1 | Maximum overtime premium per hour | = | $ 50 | |
Workings: | ||||
Sofa: | ||||
Selling price per unit | = | $ 1,950 | ||
Less: | Variable cost per unit | = | $ 1,250 | |
(a) | Contribution per unit | = | $ 700 | |
(b) | Time required per sofa | = | 14 | hours |
(a) / (b) | Maximum overtime premium per hour | = | $ 50 | per hour |
2 | Additional contribution margin per hour | = | $ 30 | |
Workings: | ||||
Love seat: | ||||
Selling price per unit | = | $ 1,300 | ||
Less: | Variable cost per unit | = | $ 850 | |
(a) | Contribution per unit | = | $ 450 | |
(b) | Time required per Love seat | = | 6 | hours |
(a) / (b) | Contribution margin per hour | = | $ 75 | per hour |
Less: | Fixed charge | = | $ 45 | |
Additional Contribution margin per hour | = | $ 30 | ||
3 | Yes | |||
As above calculated under point 2 Additional Contribution margin per hour is positive, Therefore it is beneficial to accept the offer |
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Imperial Jewelers manufactures and sells a gold bracelet for $407.00. The company's accounting system says that...
Imperial Jewelers manufactures and sells a gold bracelet for $407.00. The company's accounting system says that the unit product cost for this bracelet is $263.00 as shown below: $ 142 85 Direct materials Direct labor Manufacturing overhead Unit product cost 36 $ 263 The members of a wedding party have approached Imperial Jewelers about buying 28 of these gold bracelets for the discounted price of $367.00 each. The members of the wedding party would like special filigree applied to the...
Imperial Jewelers manufactures and sells a gold bracelet for $407.00. The company's accounting system says that the unit product cost for this bracelet is $267.00 as shown below: Direct materials Direct labor Manufacturing overhead Unit product cost $142 89 36 $267 The members of a wedding party have approached Imperial Jewelers about buying 29 of these gold bracelets for the discounted price of $367.00 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 $407.00. The company’s accounting system says that the unit product cost for this bracelet is $267.00 as shown below: Direct materials $ 149 Direct labor 82 Manufacturing overhead 36 Unit product cost $ 267 The members of a wedding party have approached Imperial Jewelers about buying 23 of these gold bracelets for the discounted price of $367.00 each. The members of the wedding party would like special filigree applied to the...
Imperial Jewelers manufactures and sells a gold bracelet for $407.00. The company’s accounting system says that the unit product cost for this bracelet is $271.00 as shown below: Direct materials $ 150 Direct labor 87 Manufacturing overhead 34 Unit product cost $ 271 The members of a wedding party have approached Imperial Jewelers about buying 18 of these gold bracelets for the discounted price of $367.00 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 $407.00. The company’s accounting system says that the unit product cost for this bracelet is $266.00 as shown below: Direct materials $ 147 Direct labor 87 Manufacturing overhead 32 Unit product cost $ 266 The members of a wedding party have approached Imperial Jewelers about buying 16 of these gold bracelets for the discounted price of $367.00 each. The members of the wedding party would like special filigree applied to the...
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...
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 $258.00 as shown below: Direct materials $145 Direct labor 80 Manufacturing overhead 33 $258 Unit product cost The members of a wedding party have approached Imperial Jewelers about buying 29 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...