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Ans:
| Differential Analysis - Computation of Profit from Special Order | ||
| Particulars | Per Unit | Total |
| Differential Revenue (2500*$44) | $44.00 | $110,000.00 |
| Differential Costs: | ||
| Direct Material ($266,800/20000 - $4) | $9.34 | $23,350.00 |
| Direct Labor ($10*110%) | $11.00 | $27,500.00 |
| Variable Manufacturing overhead ($7.6*110%) | $8.36 | $20,900.00 |
| Selling: | ||
| Commission ($44*5%) | $2.20 | $5,500.00 |
| Shipping (FOB Factory terms) | $0.00 | $0.00 |
| Total Variable costs | $30.90 | $77,250.00 |
| Contribution margin from special order | $13.10 | $32,750.00 |
| Fixed cost increment: | ||
| Extra cost ($4,500*3) | $13,500.00 | |
| Profit on Special Order | $19,250.00 | |
Ans: b:
Minimum profit required = $5,000
Existing profit at $44 selling price = $19,250
Maximum revenue that could be reduced = $19,250 - $5,000 = $14,250
Maximum decrease in per unit selling price = $14,250 / 2500 = $5.70
Lowest price greenfield could receive and still make a profit of $5,000 before income taxes = $44 - $5.70 = $38.30 per unit
Add Answer to:
1. Beyond normal capacity, fixed overhead costs increase $4,500 for each 1,000 units or fraction thereof...
Special Order Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per...
Special Order Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per period of 8,000 units of product that sell for $60 each. For the foreseeable future, regular sales volume should continue to equal normal capacity. Direct material $100,800 Direct labor 62,400 Variable manufacturing overhead 46,800 Fixed manufacturing overhead (Note 1) 38,400 Selling expense (Note 2) 35,200 Administrative expense (fixed) 15,000 $298,600 Notes: 1. Beyond normal capacity, fixed overhead costs increase $1,800 for each 500 units...
Special Urder Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per...
Special Urder Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per period of 8,000 units of product that sell for $60 each. For the foreseeable future, regular sales volume should continue to equal normal capacity. Direct material $100,800 Direct labor 62,400 Variable manufacturing overhead 46,800 Fixed manufacturing overhead (Note 1) 38,400 Selling expense (Note 2) 35,200 Administrative expense (fixed) 15,000 $298,600 Notes: 1. Beyond normal capacity, fixed overhead costs increase $1,800 for each 500 units...
Special Order Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per...
Special Order Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per period of 8,000 units of product that sell for $60 each. For the foreseeable future, regular sales volume should continue to equal normal capacity. Direct material $102,400 Direct labor 64,000 Variable manufacturing overhead 48,400 Fixed manufacturing overhead (Note 1) 38,400 Selling expense (Note 2) 35,200 Administrative expense (fixed) 15,000 $303,400 Notes: 1. Beyond normal capacity, fixed overhead costs increase $1,800 for each 500 units...
Special Order Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per...
Special Order Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per period of 8,000 units of product that sell for $60 each. For the foreseeable future, regular sales volume should continue to equal normal capacity. Direct material $99,200 Direct labor 60,800 Variable manufacturing overhead 45,200 Fixed manufacturing overhead (Note 1) ad (Note 1) 38,400 Selling expense (Note 2) 35,200 Administrative expense (fixed) 15.000 $293.800 Notes: 1. Beyond normal capacity, fixed overhead costs increase $1,800 for...
Special Order Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per...
Special Order Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per period of 8,000 units of product that sell for $60 each. For the foreseeable future, regular sales volume should continue to equal normal capacity. Direct material $102,400 Direct labor 64,000 Variable manufacturing overhead 48,400 Fixed manufacturing overhead (Note 1) 38,400 Selling expense (Note 2) 35,200 Administrative expense (fixed) 15,000 $303,400 Notes: 1. Beyond normal capacity, fixed overhead costs increase $1,800 for each 500 units...
Question 1 Answer saved Marked out of 2.00 p Flag question Special Order Total cost data...
Question 1 Answer saved Marked out of 2.00 p Flag question Special Order Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per period of 8,000 units of product that sell for $60 each. For the foreseeable future, regular sales volume should continue to equal normal capacity. Direct material $100,000 Direct labor 61,600 Variable manufacturing overhead 46,000 Fixed manufacturing overhead (Note 1) 38,400 Selling expense (Note 2) 35,200 Administrative expense (fixed) 15,000 $296,200 Notes: 1. Beyond...
Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per period of...
Total cost data follow for
Glendale Manufacturing Company, which has a normal capacity per
period of 8,000 units of product that sell for $60 each. For the
foreseeable future, regular sales volume should continue to equal
normal capacity.
Dirert matanal 64 000 Variable manufscturing overhead 48,400 Fixed manufacturing overhead (Note 38,400 Selling expense (Note 2) 35,200 Administrative expense eec) $202 400 Notes . Beyond normal capacity, fixed overhead costs Increase $1,800 for each 500 units or fraction thereof untl a...
Special Order Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per...
Special Order Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per period of 8,000 units of product that sell for $60 each. regular sales volume should continue to equal normal capacity. Direct material $102,400 Direct labor 64,000 Rectangular Snip Variable manufacturing overhead 48,400 Fixed manufacturing overhead (Note 1) 38,400 Selling expense (Note 2) 35,200 Administrative expense (fixed) 15,000 $303,400 Notes: 1. Beyond normal capacity, fixed overhead costs increase $1,800 for each 500 units or fraction...
kh. For the forestable future regular sales volume should Special Order Total cost data follow for...
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...
1234 Special Order Total cost data follow for Glendale Manufacturing Company, which has a normal capacity...
1234
Special Order Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per period of 8,000 units of product that sell for $60 each. For the foreseeable future, regular sales volume should continue to equal normal capacity. Direct material $98,400 Direct labor 60,000 Variable manufacturing overhead 44,400 Fixed manufacturing overhead (Note 1) 38,400 Selling expense (Note 2) 35,200 Administrative expense (fixed) 15,000 $291,400 Notes: 1. Beyond normal capacity, fixed overhead costs increase $1,800 for each 500...
Special Order Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per period of 8,000 units of product that sell for $60 each. For the foreseeable future, regular sales volume should continue to equal normal capacity. Direct material $100,800 Direct labor 62,400 Variable manufacturing overhead 46,800 Fixed manufacturing overhead (Note 1) 38,400 Selling expense (Note 2) 35,200 Administrative expense (fixed) 15,000 $298,600 Notes: 1. Beyond normal capacity, fixed overhead costs increase $1,800 for each 500 units...
Special Urder Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per period of 8,000 units of product that sell for $60 each. For the foreseeable future, regular sales volume should continue to equal normal capacity. Direct material $100,800 Direct labor 62,400 Variable manufacturing overhead 46,800 Fixed manufacturing overhead (Note 1) 38,400 Selling expense (Note 2) 35,200 Administrative expense (fixed) 15,000 $298,600 Notes: 1. Beyond normal capacity, fixed overhead costs increase $1,800 for each 500 units...
Special Order Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per period of 8,000 units of product that sell for $60 each. For the foreseeable future, regular sales volume should continue to equal normal capacity. Direct material $99,200 Direct labor 60,800 Variable manufacturing overhead 45,200 Fixed manufacturing overhead (Note 1) ad (Note 1) 38,400 Selling expense (Note 2) 35,200 Administrative expense (fixed) 15.000 $293.800 Notes: 1. Beyond normal capacity, fixed overhead costs increase $1,800 for...
Question 1 Answer saved Marked out of 2.00 p Flag question Special Order Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per period of 8,000 units of product that sell for $60 each. For the foreseeable future, regular sales volume should continue to equal normal capacity. Direct material $100,000 Direct labor 61,600 Variable manufacturing overhead 46,000 Fixed manufacturing overhead (Note 1) 38,400 Selling expense (Note 2) 35,200 Administrative expense (fixed) 15,000 $296,200 Notes: 1. Beyond...
Total cost data follow for
Glendale Manufacturing Company, which has a normal capacity per
period of 8,000 units of product that sell for $60 each. For the
foreseeable future, regular sales volume should continue to equal
normal capacity.
Dirert matanal 64 000 Variable manufscturing overhead 48,400 Fixed manufacturing overhead (Note 38,400 Selling expense (Note 2) 35,200 Administrative expense eec) $202 400 Notes . Beyond normal capacity, fixed overhead costs Increase $1,800 for each 500 units or fraction thereof untl a...
Special Order Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per period of 8,000 units of product that sell for $60 each. regular sales volume should continue to equal normal capacity. Direct material $102,400 Direct labor 64,000 Rectangular Snip Variable manufacturing overhead 48,400 Fixed manufacturing overhead (Note 1) 38,400 Selling expense (Note 2) 35,200 Administrative expense (fixed) 15,000 $303,400 Notes: 1. Beyond normal capacity, fixed overhead costs increase $1,800 for each 500 units or fraction...
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...
1234
Special Order Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per period of 8,000 units of product that sell for $60 each. For the foreseeable future, regular sales volume should continue to equal normal capacity. Direct material $98,400 Direct labor 60,000 Variable manufacturing overhead 44,400 Fixed manufacturing overhead (Note 1) 38,400 Selling expense (Note 2) 35,200 Administrative expense (fixed) 15,000 $291,400 Notes: 1. Beyond normal capacity, fixed overhead costs increase $1,800 for each 500...
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