Question

kh. For the forestable future regular sales volume should Special Order Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per period of 8,000 continue to equal normal capacity 599,200 Direct labor 60,800 Variable manufacturing overhead Feed manufacturing overhead Note 11 Seing expense Note: Administrative perver 15.000 5293,800 Notes 1. Beyond normal capacity, fixed overhead costs increase $1,800 for each 500 units or fraction thereof until a maximum capacity of 10,000 units is reached 2. Selling expenses consist of a 6% sales commission and shipping costs of 80 cents per unit. Glendale pays pnly three-fourths of the regular sales commission on sales totaling 501 to 1,000 units and only two thirds the regular commission on sales totaling 1,000 units or more Glendale's sales manager has received a special order for 1,200 units from a large discount chain at a price of 836 each FO.B.factory. The controller's office has furnished the following additional cost data related to the special order: 1. Changes in the product's design will reduce direct material costs $1.50 per unit 2. Special processing will add 20% to the per-unit direct labor costs. 3. Variable overhead will continue at the same proportion of direct labor costs. 4. Other costs should not be affected

Answer 1

what will be the aimoune of Shipiny cos+ as it is a it will vay cas peo the change sabowr Fxp. oveohead cost (Vauieble so in ६Diciogु. O.80 9.12 0.96 / uart 9o12x0.80 totau vauniable cast a 28.24 ¢ 0.96 [29.2/ unit

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Page Date Poofit = Revanue totau vouiabre cOst - Ex1aa COST. E13,200 - (1200x29.2)- 5400 2760 what shoud be selling price to earn 3600 Pofit, profit = Revanue - (torul vauoblecosA). - Extra Zast -(1200x 29.2) - 5400 3600 Ccx1200 35,040 go002 1200- 1200x D Os 36.7. S0, minimuM Selling Paica should be 36.7 t0 eaun. 3600 as Poofit.

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