A company has 5 employees who have a cost of ($100) per day each but currently have

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A company has 5 employees who have a cost of \($100\) per day each but currently have no work to do; this situation is expected to last for the next two weeks. The company is considering accepting a special order that will take 5 employees one week each, commencing immediately. The work will require supervision, equivalent to 10% of the variable labour time, but all of the supervisors are very busy. Supervision costs are normally \($200\) per day but additional supervision will involve overtime at the rate of \($300\) per day. The relevant cost for the order is

a. $750

b. $1,250

c. $3,000

d. $3,250

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Accounting For Managers Interpreting Accounting Information For Decision Making

ISBN: 9781118037966

1st Canadian Edition

Authors: Paul M. Collier, Sandy M. Kizan, Eckhard Schumann

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