1) | The financial advantage (disadvantage )is equal to the contribution margin from special order | ||||||
Revenue | $ 21,000.00 | ||||||
(1400 units *15) | |||||||
Less: | |||||||
Direct Material | $ 2,240.00 | ||||||
(1400*1.60) | |||||||
Direct Labor | $ 4,200.00 | ||||||
(1400*3) | |||||||
Variable Mfg Overhead | $ 1,400.00 | ||||||
(1400*1) | |||||||
Variable Selling And Admin Overhead | $ 2,520.00 | ||||||
(1400*1.8) | |||||||
Financial Advantage | $ 10,640.00 | ||||||
2) | Relevant Costs per unit | ||||||
Direct Material | $ 1.60 | ||||||
Direct Labor | $ 3.00 | ||||||
Variable Mfg Overhead | $ 1.00 | ||||||
Variable Selling And Admin Overhead | $ 1.80 | ||||||
Total | $ 7.40 | ||||||
Fixed costs are not relevant. These costs will be incurred irrespective | |||||||
the scale of production.. | |||||||
Exercise 12-9 Special Order Decision (L012-4) Delta Company produces a single product. The cost of producing...
Exercise 12-9 Special Order Decision (LO12-4] Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 105,600 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 2.40 $ 3.00 $ 0.50 $ 4.05 $ 1.20 $ 2.00 The normal selling price is $20.00 per unit. The company's capacity is...
Exercise 12-9 Special Order Decision (LO12-4) Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 105.600 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 2.10 $ 2.80 $8.5e $ 3.85 $ 1.60 $1.ee The normal selling price is $24.00 per unit. The company's capacity is 122.400 units...
Exercise 12-9 Special Order Decision [LO12-4] Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's norma activity level of 93,600 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 2.50 $ 3.00 $ 0.90 1.30 $ 2.00 The normal selling price is $21.00 per unit. The company's capacity is 122,400 units per...
Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 100,800 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 2.20 $ 4.00 $ 0.60 $ 3.25 $1.50 $ 3.00 The normal selling price is $21.00 per unit. The company's capacity is 114,000 units per year. An order has...
Exercise 12-9 Special Order Decision (LO12-4] Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 84,000 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 2.00 $ 4.00 $ 0.70 $ 3.55 $ 1.80 $ 3.00 The normal selling price is $19.00 per unit. The company's capacity is...
Exercise 11-9 Special Order Decision (LO11-4] Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 60,000 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expense Fixed selling and administrative expense $ 5.10 $ 3.80 $ 1.00 $ 4.20 $ 1.50 $ 2.40 The normal selling price is $21 per unit. The company's capacity is...
Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company’s normal activity level of 103,200 units per year is: Direct materials $ 2.30 Direct labor $ 2.00 Variable manufacturing overhead $ 0.70 Fixed manufacturing overhead $ 5.25 Variable selling and administrative expenses $ 2.00 Fixed selling and administrative expenses $ 1.00 The normal selling price is $19.00 per unit. The company’s capacity is 132,000 units per year. An order...
Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 86,400 units per year is: Direct materials $2.00 Direct labor $3.00 Variable manufacturing overhead $0.60 Fixed manufacturing overhead $4.75 Variable selling and administrative expenses $1.90 Fixed selling and administrative expenses $2.00 The normal selling price is $23.00 per unit. The company's capacity is 114,000 units per year. An order has been received from a mail-...
Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 108,000 units per year is Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses The normal selling price is $19.00 per unit. The company's capacity is 136,800 units per year. An order has been received from a mail order house for 2400 units at...
Exercise 12-9 Special Order Decision [LO12-4] Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company’s normal activity level of 85,200 units per year is: Direct materials $ 2.40 Direct labor $ 4.00 Variable manufacturing overhead $ 0.60 Fixed manufacturing overhead $ 4.95 Variable selling and administrative expenses $ 1.80 Fixed selling and administrative expenses $ 3.00 The normal selling price is $22.00 per unit. The company’s capacity is...