Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2 36:12 Riel a variety of tool boxes. The firm is currently at 80% of its full of 5,850 machine- hours per month. Each unit

2 36:12 Riel a variety of tool boxes. The firm is currently at 80% of its full of 5,850 machine- hours per month. Each unit requires 30 minutes of machine time. Its sales manager has been for special orders to make use of the excess . JCL Ltd, a customer, has offered to buy 10,000 tool boxes at $11.50 per box, provided that the entire quantity is in two months. The current per-box cost data are as follows: $ 3.50 5.00 3.00 $11.50 Direct labour ( hour at $10.00/hour) Total overhead Total unit product cost Both fixed and overhead are allocated using direct as a base. Variable overhead is $2.50 per direct labour- hour. the order, Riel would have to operate at 4,680 direct in each of the next two . The regular price of the tool boxes is $14.50. A sales of 50 cents per unit is paid to sales on all regular sales. No selling or expenses are anticipated on account of accepting this special order and no commissions will be paid on this special order. The manager is concerned about the labour time that 10,000 boxes would require. She cannot schedule overtime Riel has a policy against itJCL will not accept fewer than 10,000 tool boxes. , in order to fill the special order, it would be necessary for Riel Company to divert some of its regular sales to the special order

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud Analytics Strategies And Methods For Detection And Prevention

Authors: Delena D. Spann

1st Edition

111823068X, 978-1118230688

More Books

Students also viewed these Accounting questions