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TB Problem Qu. 12-189 Wehrs Corporation has received a request for a special ... Wehrs Corporation has received a request for

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Answer #1

Increase = $91,280

Working

financial advantage (disadvantage) of accepting the special order
Additional Revenue from offer (8400 x $45.3) $      380,520.00
Less: Total Additional cost due to acceptance of offer $      289,240.00
Financial Advantage $        91,280.00

.

Calculation of Additional Cost of Order
Per Unit Total
Direct material $                16.10 $       135,240.00
Direct labor $                   5.40 $          45,360.00
Variable manufacturing overheads   $                   2.60 $          21,840.00
Additional Variable cost $                   5.00 $          42,000.00
Additional cost for special tool $          44,800.00
Total Additional cost due to acceptance of order $                29.10 $       289,240.00
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