=+9-14 K Relevant-cost approach to pricing decisions, special order OBJECTIVE 5 The following financial data apply to

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=+9-14 K Relevant-cost approach to pricing decisions, special order OBJECTIVE 5 The following financial data apply to the DVD production plant of Dill Company for October 2014:

Budgeted manufacturing cost per DVD pack Direct materials $1.60 Direct manufacturing labour 0.90 Variable manufacturing overhead 0.70 Fixed manufacturing overhead 1.00 Total manufacturing cost $4.20 Variable manufacturing overhead varies with the number of DVD packs produced. Fixed manufacturing overhead of $1 per pack is based on budgeted fixed manufacturing overhead of $150000 per month and budgeted production of 150000 packs per month.

The Dill Company sells each pack for $5.

Marketing costs have two components:

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Cost Accounting A Managerial Emphasis

ISBN: 9781442563377

2nd Edition

Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan

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