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barrels to retailers either assembled or unassembled. The cost of an unassembled wheel barrel is as follows Direct materials Direct labor Variable overhead (70% of

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barrels to retailers either assembled or unassembled. The cost of an unassembled wheel barrel is as follows Direct materials Direct labor Variable overhead (70% of direct labor) Fixed overhead (30% of direct labor) Manufacturing cost per unit $152 70 49 $290 The unassembled wheel barrels are sold to retailers at $450 each Hhome currently has unused productive capacity that is expected to continue indefinitely, management has concluded that some of this capacity can be used to assemble the wheel barrels and sell them at $495 each. Assembling the wheel barrels will increase direct materials by $5 per wheel barrell, and direct labor by 510 wheel barrel. Additional variable overhead will be incurred at the normal rates, but there will be no additional fixed overhead as a result of assembling the wheel barrels Instructions Present the analysis in a table. (a) Prepare an incremental analysis for the sell-or-process-further decision (b) Should Speedy sell or process further? Why or why not

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