Requirement 1
Annual profit would Increase by | $ 16,100.00 |
Working
financial advantage (disadvantage) of accepting the special order | |
Additional Revenue from offer (1400 x $18) | $ 25,200.00 |
Less: Total Additional cost due to acceptance of offer | $ 9,100.00 |
Financial Advantage | $ 16,100.00 |
Calculation of Additional Cost of Order | ||
Per Unit | Total | |
Direct material | $ 1.70 | $ 2,380.00 |
Direct labor | $ 2.00 | $ 2,800.00 |
Variable manufacturing overheads | $ 1.00 | $ 1,400.00 |
Variable selling and administrative expenses | $ 1.80 | $ 2,520.00 |
Total Additional cost due to acceptance of order | $ 6.50 | $ 9,100.00 |
Requirement 2
Relevant cost per unit = | $ 1.80 |
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 500 units.
value: 1.00 points Exercise 10-9 Special Order [LO10-4] Delta Company produces a single product. The cost of producing...
Exercise 12-9 Special Order Decision (L012-4) 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 $ 1.60 $ 3.00 $ 1.00 $ 3.55 $ 1.80 $ 2.00 The normal selling price is $18.00 per unit. The company's capacity is...
Exercise 12-9 Special Order Decision [LO12-4] Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's norma activity level of 93,600 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 2.50 $ 3.00 $ 0.90 1.30 $ 2.00 The normal selling price is $21.00 per unit. The company's capacity is 122,400 units per...
Exercise 12-9 Special Order Decision (LO12-4] 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 84,000 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 $ 4.00 $ 0.70 $ 3.55 $ 1.80 $ 3.00 The normal selling price is $19.00 per unit. The company's capacity is...
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 91,200 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 2.40 $ 3.00 $ 0.80 $ 4.85 $1.30 $ 2.00 The normal selling price is $19.00 per unit. The company's capacity is 109,200 units per year. An order has...
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 $ 2.00 $ 3.00 $ 1.00 $ 4.85 $ 1.60 $ 2.00 The normal selling price is $23.00 per unit. The company's capacity is 118,800 units per year. An order...
Exercise 12-9 Special Order Decision [LO12-4] 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 85,200 units per year is: Direct materials $ 2.40 Direct labor $ 4.00 Variable manufacturing overhead $ 0.60 Fixed manufacturing overhead $ 4.95 Variable selling and administrative expenses $ 1.80 Fixed selling and administrative expenses $ 3.00 The normal selling price is $22.00 per unit. The company’s capacity is...
Exercise 12-9 Special Order Decision (LO12-4) 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 $ 2.10 $ 2.80 $8.5e $ 3.85 $ 1.60 $1.ee The normal selling price is $24.00 per unit. The company's capacity is 122.400 units...
Exercise 12-9 Special Order Decision (LO12-4] 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 $ 2.40 $ 3.00 $ 0.50 $ 4.05 $ 1.20 $ 2.00 The normal selling price is $20.00 per unit. The company's capacity is...
Exercise 11-9 Special Order Decision (LO11-4] 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 60,000 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expense Fixed selling and administrative expense $ 5.10 $ 3.80 $ 1.00 $ 4.20 $ 1.50 $ 2.40 The normal selling price is $21 per unit. The company's capacity is...
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 100,800 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 1.50 $ 4.00 $1.00 $ 4.75 $ 1.20 $ 3.00 The normal selling price is $19.00 per unit. The company's capacity is 129,600 units per year. An order has...