Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

cost for this bracelet is $266.00 as shown below Says at the product Direct materials Direct labar Manufacturing overhead Unit product cost $145 85 36

image text in transcribed
image text in transcribed
cost for this bracelet is $266.00 as shown below Says at the product Direct materials Direct labar Manufacturing overhead Unit product cost $145 85 36 $266 The members of a wedding party have approached Imperial Jewelers about buying 23 of these gold bracelets for the discounted price of $369.00 each. The members of the wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $8. Imperial Jewelers would also have to buy a special tool for $466 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However $9.00 of the overhead is vanable with respect to the number of bracelets produced. The company also believes that accepting this order would have no etfect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party's order using its existing manufacturing capacity Required: 1. What is the financial advantage (disadvantages of accepting the special order from the wedding party? 2. Should the company accept the special order? Complete this question by entering your answers in the tabs below. Required: Required 2 What is the financial advantage (disadvantage) of accepting the special order from the wedding party? hemtral Required 2 > cost for this bracelet is $266.00 as shown below. Direct materials Direct labor Manufacturing overhead Unit product cost $145 85 36 $266 The members of a wedding party have approached Imperial Jewelers about buying 23 of these gold bracelets fo of $369.00 each. The members of the wedding party would like special filigree applied to the bracelets that woul materials cost per bracelet by $8. Imperial Jewelers would also have to buy a special tool for $466 to apply the fi bracelets. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhe unaffected by variations in how much jewelry is produced in any given period. However, $9.00 of the overhead is to the number of bracelets produced. The company also believes that accepting this order would have no effect produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party's order usi manufacturing capacity Required: 1. What is the financial advantage (disadvantage) of accepting the special order from the wedding party? 2. Should the company accept the special order? Complete this question by entering your answers in the tabs below. Required 1 Requited 2 Should the company accept the special order? OYes O No

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_2

Step: 3

blur-text-image_3

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

Advanced Accounting

Authors: Floyd A. Beams, Robin P. Clement, Suzanne H. Lowensohn, Joseph H. Anthony

9th Edition

0131851225, 978-0131851221

More Books

Students explore these related Accounting questions

Question

reference your work in a credible way.

Answered: 3 weeks ago

Question

read in a critically evaluative way;

Answered: 3 weeks ago