1.
Direct material = $144 per bracelet
In the special order, direct material cost will increase by $7 per bracelet.
Hence, direct material cost in special order = 144 + 7
= $151 per bracelet
Variable manufacturing overhead = $8 per bracelet
Due to the acceptance of special order, fixed manufacturing overheads will not increase and thus fixed manufacturing overheads are not relevant in deciding whether to accept the special order or not.
Analysis of special order
Sales revenue (17 x 368) |
6256 |
Costs: |
|
Direct material (17 x 151) |
-2567 |
Direct labor (17 x 82) |
-1394 |
Variable manufacturing overhead (17 x 8) |
-136 |
Special tool |
- 467 |
Net income |
$1692 |
Financial advantage of accepting the special order from the wedding party = $1692
2.
The company should accept the special order since it will generate an additional income of $1692
Kindly give a positive vote if you are satisfied with the solution provided. Please ask if you have and doubt.
Thank You
Imperial Jewelers manufactures and sells a gold bracelet for $408.00. The company's accounting system says that...
Imperial Jewelers manufactures and sells a gold bracelet for $408.00. The company's accounting system says that the unit product cost for this bracelet is $266.00 as shown below: $150 81 Direct materials Direct labor Manufacturing overhead Unit product cost 35 $266 The members of a wedding party have approached Imperial Jewelers about buying 14 of these gold bracelets for the discounted price of $368.00 each. The members of the wedding party would like special filigree applied to the bracelets that...
Imperial Jewelers manufactures and sells a gold bracelet for $408.00. The company's accounting system says that the unit product cost for this bracelet is $268.00 as shown below: $145 Direct materials Direct labor Manufacturing overhead Unit product cost 36 $268 The members of a wedding party have approached Imperial Jewelers about buying 22 of these gold bracelets for the discounted price of $368.00 each. The members of the wedding party would like special filigree applied to the bracelets that would...
Imperial Jewelers manufactures and sells a gold bracelet for $408.00. The company's accounting system says that the unit product cost for this bracelet is $274.00 as shown below: $149 89 Direct materials Direct labor Manufacturing overhead Unit product cost 36 $274 The members of a wedding party have approached Imperial Jewelers about buying 17 of these gold bracelets for the discounted price of $368.00 each. The members of the wedding party would like special filigree applied to the bracelets that...
Imperial Jewelers manufactures and sells a gold bracelet for $408.00. The company’s accounting system says that the unit product cost for this bracelet is $261.00 as shown below: Direct materials $ 142 Direct labor 87 Manufacturing overhead 32 Unit product cost $ 261 The members of a wedding party have approached Imperial Jewelers about buying 24 of these gold bracelets for the discounted price of $368.00 each. The members of the wedding party would like special filigree applied to the...
Imperial Jewelers manufactures and sells a gold bracelet for $408.00. The company’s accounting system says that the unit product cost for this bracelet is $262.00 as shown below: Direct materials $ 141 Direct labor 82 Manufacturing overhead 39 Unit product cost $ 262 The members of a wedding party have approached Imperial Jewelers about buying 13 of these gold bracelets for the discounted price of $368.00 each. The members of the wedding party would like special filigree applied to the...
Imperial Jewelers manufactures and sells a gold bracelet for $401.00. The company's accounting system says that the unit product cost for this bracelet is $263.00 as shown below Direct materials $146 Direct labor 81 Manufacturing overhead 36 $263 Unit product cost The members of a wedding party have approached Imperial Jewelers about buying 27 of these gold bracelets for the discounted price of $361.00 each. The members of the wedding party would like special filigree applied to the bracelets that...
Imperial Jewelers manufactures and sells a gold bracelet for $405.00. The company's accounting system says that the unit product cost for this bracelet is $261.00 as shown below: $142 Direct materials Direct labor Manufacturing overhead Unit product cost $261 The members of a wedding party have approached Imperial Jewelers about buying 24 of these gold bracelets for the discounted price of $365.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require...
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company's accounting system says that the unit product cost for this bracelet is $273.00 as shown below: $146 88 Direct materials Direct labor Manufacturing overhead Unit product cost $ 273 The members of a wedding party have approached Imperial Jewelers about buying 13 of these gold bracelets for the discounted price of $364.00 each. The members of the wedding party would like special filigree applied to the bracelets that...
Imperial Jewelers manufactures and sells a gold bracelet for $410.00. The company's accounting system says that the unit product cost for this bracelet is $263.00 as shown below: $147 Direct materials Direct labor Manufacturing overhead Unit product cost The members of a wedding party have approached Imperial Jewelers about buying 26 of these gold bracelets for the discounted price of $370.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial...
Imperial Jewelers manufactures and sells a gold bracelet for $410.00. The company's accounting system says that the unit product cost for this bracelet is $263.00 as shown below: $147 Direct materials Direct labor Manufacturing overhead Unit product cost The members of a wedding party have approached Imperial Jewelers about buying 26 of these gold bracelets for the discounted price of $370.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial...