Requirement 1
Financial advantage | $ 1,996.00 |
Working
Per | Total 21 | |
Unit | Bracelets | |
Incremental revenue | $ 362.00 | $ 7,602.00 |
Incremental cost: | ||
Variable cost | ||
Direct material | $ 145.00 | $ 3,045.00 |
Direct labor | $ 87.00 | $ 1,827.00 |
Variable manufacturing cost | $ 7.00 | $ 147.00 |
Cost of special filigree | $ 6.00 | $ 126.00 |
Total variable cost | $ 245.00 | $ 5,145.00 |
Fixed cost: | ||
Purchase of special tool | $ 461.00 | |
Total incremental cost | $ 5,606.00 | |
Incremental net Operating income (loss) | $ 1,996.00 |
Requirement 2
Yes
The special order should be accepted.
Imperial Jewelers manufactures and sells a gold bracelet for $402.00. The company's accounting system says that...
Imperial Jewelers manufactures and sells a gold bracelet for $402.00. The company’s accounting system says that the unit product cost for this bracelet is $273.00 as shown below: Direct materials $ 150 Direct labor 85 Manufacturing overhead 38 Unit product cost $ 273 The members of a wedding party have approached Imperial Jewelers about buying 19 of these gold bracelets for the discounted price of $362.00 each. The members of the wedding party would like special filigree applied to the...
Imperial Jewelers manufactures and sells a gold bracelet for $402.00. The company’s accounting system says that the unit product cost for this bracelet is $266.00 as shown below: Direct materials $ 143 Direct labor 88 Manufacturing overhead 35 Unit product cost $ 266 The members of a wedding party have approached Imperial Jewelers about buying 28 of these gold bracelets for the discounted price of $362.00 each. The members of the wedding party would like special filigree applied to the...
Imperial Jewelers manufactures and sells a gold bracelet for $402.00. The company’s accounting system says that the unit product cost for this bracelet is $261.00 as shown below: Direct materials $ 149 Direct labor 81 Manufacturing overhead 31 Unit product cost $ 261 The members of a wedding party have approached Imperial Jewelers about buying 20 of these gold bracelets for the discounted price of $362.00 each. The members of the wedding party would like special filigree applied to the...
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 $271.00 as shown below: $143 89 Direct materials Direct labor Manufacturing overhead Unit product cost 39 $ 271 The members of a wedding party have approached Imperial Jewelers about buying 29 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...
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...
Imperial Jewelers manufactures and sells a gold bracelet for $409.00. The company's accounting system says that the unit product cost for this bracelet is $275.00 as shown below. Direct saterials Direct labor Manufacturing overhead 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 $369.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial Jewelers...
Imperial Jewelers manufactures and sells a gold bracelet for $403.00. The company's accounting system says that the unit product cost for this bracelet is $254.00 as shown below: Direct materials $140 Direct labor 80 Manufacturing overhead 34 $254 Unit product cost The members of a wedding party have approached Imperial Jewelers about buying 18 of these gold bracelets for the discounted price of $363.00 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 $404.00. The company's accounting system says that the unit product cost for this bracelet is $265.00 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 21 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 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 $258.00 as shown below: $145 Direct materials Direct labor Manufacturing overhead Unit product cost 30 $258 The members of a wedding party have approached Imperial Jewelers about buying 24 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...
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 $259.00 as shown below: $145 82 Direct materials Direct labor Manufacturing overhead Unit product cost 32 $259 The members of a wedding party have approached Imperial Jewelers about buying 14 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...