1) Incremental analysis
Incremental revenue (9000*46.50) | 418500 | |
Incremental cost | ||
Direct material (9000*17.30) | 155700 | |
Direct labor (9000*6.6) | 59400 | |
Variable overhead (9000*3.8) | 34200 | |
Additional modification (9000*6.2) | 55800 | |
Special molds | 46000 | |
Total incremental cost | 351100 | |
Incremental profit (loss) | 67400 | |
Increase by $67400
TB Problem Qu. 12-189 Wehrs Corporation has received a request for a special ... Wehrs Corporation...
TB Problem Qu. 12-189 Wehrs Corporation has received a request for a special ... Wehrs Corporation has received a request for a special order of 8,400 units of product K19 for $45.30 each. The normal selling price of this product is $50.40 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product K19 is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost...
Wehrs Corporation has received a request for a special order of 9,800 units of product K19 for $47.30 each. The normal selling price of this product is $52.40 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product K19 is computed as follows: Direct materials $ 18.10 Direct labor 7.40 Variable manufacturing overhead 4.60 Fixed manufacturing overhead 7.50 Unit product cost $ 37.60 Direct labor is a variable cost. The...
Wehrs Corporation has received a request for a special order of 8,300 units of product K19 for $45.20 each. The normal selling price of this product is $50.30 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product K19 is computed as follows: Direct materials $ 16.00 Direct labor 5.30 Variable manufacturing overhead 2.50 Fixed manufacturing overhead 5.40 Unit product cost $ 29.20 Direct labor is a variable cost. The...
Wehrs Corporation has received a request for a special order of 9,800 units of product K19 for $47.30 each. The normal selling price of this product is $52.40 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product K19 is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $18.10 7.40 4.60 7.50 $37.60 Direct labor is a variable cost. The special order...
Wehrs Corporation has received a request for a special order of 9,100 units of product K19 for $46.00 each. The normal selling price of this product is $51.10 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product K19 is computed as follows: Direct materials $ 16.80 Direct labor 6.10 Variable manufacturing overhead 3.30 Fixed manufacturing overhead 6.20 Unit product cost $ 32.40 Direct labor is a variable cost. The...
Wehrs Corporation has received a request for a special order of 9,100 units of product K19 for $46.00 each. The normal selling price of this product is $51.10 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product K19 is computed as follows: Direct materials $ 16.80 Direct labor 6.10 Variable manufacturing overhead 3.30 Fixed manufacturing overhead 6.20 Unit product cost $ 32.40 Direct labor is a variable cost. The...
Wehrs Corporation has received a request for a special order of 9,000 units of product K19 for $45.90 each. The normal selling price of this product is $51.00 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product K19 is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $16.70 6.00 3.20 6.10 $32.00 Direct labor is a variable cost. The special order...
Tullius Corporation has received a request for a special order of 9,600 units of product C64 for $47.70 each. The normal selling price of this product is $52.80 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product C64 is computed as follows: Direct materials $18.50 Direct labor 7.80 Variable manufacturing overhead 5.00 Fixed manufacturing overhead 7.90 Unit product cost $39.20 Direct labor is a...
Holtrop Corporation has received a request for a special order of 9,400 units of product Z74 for $46.30 each. The normal selling price of this product is $51.40 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product Z74 is computed as follows: Direct materials $17.10 Direct labor 6.40 Variable manufacturing overhead 3.60 Fixed manufacturing overhead 6.50 Unit product cost $33.60 Direct labor is a...
Gallerani Corporation has received a request for a special order of 4,200 units of product A90 for $26.80 each. Product A90's unit product cost is $26.20, determined as follows: $ Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost 2.50 7.80 6.90 9.00 $26.20 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product A90...