Case 10 - Word galdo gaspar GG a File Home Insert Draw Design Layout References Mailings Review View Help Tell me what you want to do Share A .. 14 & cut - Copy Paste Format Painter Clipboard Calibri (Body) 11 - A A Aa A A BI Unhe X, * A cDe bccc I No Spac... Heading 1 Heading 2 Title Find ab Replace Select ay L- Normal Font 19 Paragraph Styles Editing Case 13 Overhead Application and Pricing Decisions Golden Craft Furniture, a high-quality manufacturer, has just received a offer from a large wholesaler for a single batch of goods. The offered price is P43.000, which is about P12,000 less than the normal for similar work. Golden Craft has never done business with the wholesaler, and the sales manager wants to get a foot in the door. She is sure that existing sales would be unaffected by the special order and wants to accept the order if any profit can be made. The production manager provided the following estimates of cost for the order: Materials, P12,000: Direct labor at 3,000 hrs, P18,000; and Overhead, P15,000 or a total of P45,000 The production manager informed you that the overhead cost is based on the overhead application rate of P5 per direct labor hour. The rate includes both fixed and variable overhead and was based on 60,000 expected direct labor hours and P300,000 budgeted total overhead costs. The production manager told you that the difference in rates is due to the difference in budgeted direct labor hours-the cost structure is the same this year as last year. Required: 1. Prepare calculation to determine the incremental cost of the order. Should the offer be accepted? 2. What other factors should be considered in deciding whether to accept this special order? Justify. 1 Page 5 of 13 words ng Fnglish (United Kingdom) eg + 100% W ENG UK O 9:15 PM 10/31/2021