Requirement 1
Financial Advantage | $ 10,670.00 |
Working
financial advantage (disadvantage) of accepting the special order | |
Additional Revenue from offer (1100 x $18) | $ 19,800.00 |
Less: Total Additional cost due to acceptance of offer | $ 9,130.00 |
Financial Advantage | $ 10,670.00 |
.
Calculation of Additional Cost of Order | ||
Per Unit | Total | |
Direct material | $ 2.20 | $ 2,420.00 |
Direct labor | $ 4.00 | $ 4,400.00 |
Variable manufacturing overheads | $ 0.60 | $ 660.00 |
Variable selling and administrative expenses | $ 1.50 | $ 1,650.00 |
Total Additional cost due to acceptance of order | $ 8.30 | $ 9,130.00 |
Requirement 2
Relevant cost per unit = | $ 1.50 |
.
Only selling cost will be relevant cost because all the manufacturing cost is already done hence that manufacturing cost is sunk cost and irrelevant in the case of 1000 units.
Delta Company produces a single product. The cost of producing and selling a single unit of...
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 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 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...
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 87,600 units per year is: Direct materials 2.40 $ 3.00 0.80 4.15 $ 1.70 2.00 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses The normal selling price is $22.00 per unit. The company's capacity is 120,000 units per year. An order has been received from...
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 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $1.60 $4.00 $0.70 $3.65 $1.50 $3.00 The normal selling price is $21.00 per unit. The company's capacity is 132,000 units per year. An order has been received from a mail-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 96,000 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 1.80 $ 3.00 $ 0.80 $ 4.25 $ 1.20 $ 2.00 The normal selling price is $24.00 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 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 $ 2.30 $ 2.00 $ 0.60 $ 3.65 $ 1.90 $ 1.00 The normal selling price is $23.00 per unit. The company's capacity is 138,000 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 92.400 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 $ 3.00 $ 0.60 $ 4.55 $ 1.40 $ 2.ee The normal selling price is $22.00 per unit. The company's capacity is 110,400 units per year. An order...
Help please! Check 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 87,600 units per year is: $ 2.20 $4.00 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 $23.00 per unit. The company's capacity is 123,600 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 102,000 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 $ 3.00 $ 0.60 $ 4.75 $ 1.10 $ 2.00 The normal selling price is $23.00 per unit. The company's capacity is 114,000 units per year. An order...