Question

The following information relates to a product produced by Faulkland Company: $ 11 Direct materials Direct labor Variable oveCarter Industries has two divisions: the West Division and the East Division. Information relating to the divisions for the y

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Only variable cost should be considered for special order.

Net profit or loss from special order = ($34 - $11 - $8 - $7) X 64,000 = $512,000 increase

1st option

Segment margin of West division = 47,000 ($7 - $3) - $65,000 = $123,000

1st option

Add a comment
Know the answer?
Add Answer to:
The following information relates to a product produced by Faulkland Company: $ 11 Direct materials Direct...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • he following information relates to a product produced by Faulkland Company. Direct materials Direct labor Variable...

    he following information relates to a product produced by Faulkland Company. Direct materials Direct labor Variable overhead Fixed overhead Unit cost Fixed selling costs are $1.070.000 per year. Variable selling costs of $5 per unit sold are added to cover the transportation cost. Although production capacity is 570.000 units per year, Faulkland expects to produce only 470.000 units next year. The product normally sells for $55 each A customer has offered to buy 67.000 units for $46 each. The customer...

  • The following information relates to a product produced by Faulkland Company: Direct materials $ 15 Direct...

    The following information relates to a product produced by Faulkland Company: Direct materials $ 15 Direct labor 12 Variable overhead 11 Fixed overhead 13 Unit cost $ 51 Fixed selling costs are $1,080,000 per year. Variable selling costs of $3 per unit sold are added to cover the transportation cost. Although production capacity is 580,000 units per year, Faulkland expects to produce only 480,000 units next year. The product normally sells for $56 each. A customer has offered to buy...

  • Carter Industries has two divisions: the West Division and the East Division. Information relating to the...

    Carter Industries has two divisions: the West Division and the East Division. Information relating to the divisions for the year just ended is as follows: West 45,eee le East 34,00 Units produced and sold Selling price per unit Variable costs per unit Direct fixed cost Common fixed cost 63,000 55, 125,000 5 5,889 Common foxed expenses have been allocated equally to each of the two divisions. Carter's segment margin for the West Division is: 0 0 0 0

  • 14. The following information relates to a product produced by Marigold Company: Direct materials $20 Direct...

    14. The following information relates to a product produced by Marigold Company: Direct materials $20 Direct labor 10 Variable overhead 20 Fixed overhead 15 Unit cost $65 Fixed selling costs are $650,000 per year, and variable selling costs are $10 per unit sold. Although production capacity is 400,000 units per year, the company expects to produce only 250,000 units next year. The product normally sells for $100 each. A customer has offered to buy 40,000 units for $80 each. The...

  • Required Information [The following Information applies to the questions displayed below.] Diego Company manufactures one product...

    Required Information [The following Information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $81 per unit in two geographic regions—the East and West regions. The following Information pertains to the company's first year of operations in which It produced 52,000 units and sold 47,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Pixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense...

  • Question 10 (4 points) The following information relates to a product produced by Creamer Company Direct...

    Question 10 (4 points) The following information relates to a product produced by Creamer Company Direct materials Direct labor Variable overhead Fixed overhead Unit cost Fixed selling costs are $500,000 per year, and variable selling costs are $12 per unit sold. Although production capacity is 600,000 units per year, the company expects to produce only 400,000 units next year. The product normally sells for $120 each. A customer has offered to buy 60,000 units for $90 each If the firm...

  • Required information The following information applies to the questions displayed below.] Diego Company manufactures one product...

    Required information The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $81 per unit in two geographic regions--the East and West regions. The following information pertains to the company's first year of operations in which it produced 52,000 units sold 47,000 units Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $936,000...

  • Diego Company manufactures one product that is sold for $75 per unit in two geographic regions—the...

    Diego Company manufactures one product that is sold for $75 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 57,000 units and sold 52,000 units. Variable costs per unit: Manufacturing: Direct materials $ 25 Direct labor $ 18 Variable manufacturing overhead $ 3 Variable selling and administrative $ 5 Fixed costs per year: Fixed manufacturing overhead $ 627,000 Fixed selling and administrative expense $...

  • Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product...

    Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $81 per unit in two geographic regions—the East and West regions. The following information pertains to the company's first year of operations in which it produced 52,000 units and sold 47,000 units A $ $ 20 4 A Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing...

  • The following information applies to the questions displayed below.] Diego Company manufactures one product that is...

    The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $78 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 60,000 units and sold 57,000 units. Variable costs per unit: Manufacturing: Direct materials $ 28 Direct labor $ 12 Variable manufacturing overhead $ 2 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT