Question
Determine the financial impact of accepting a special order This special order would have no effect on the company's other sales The company has ample
Determine the financial impact of accepting a special order This special order would have no effect on the company's other sales The company has ample spare capacity for producing the special order. The special order is for 2,500 units at $30 a uni The normal unit product cost is $21.40 Direct materials $6.10 Direct labor 4.00 Variable manufacturing overhead 3.20 Fixed manufacturing overhead 8.10 Unit product cost $21.40 Direct labor is a variable cost. There is no impact on fixed manufacturing overhead costs. Modifications will be made that increase the variable costs by $1.70 per unit. There is also a need to build as special mold. The mold build cost is $15,000.00 and the mold will have no salvage value. ($2,300) O $14.700) $15.200 $22.500 Question 6 Determine the financial impact of making the product rather than buying it from an outside supplier. Company makes 33,000 units of the product. The cost per unit is Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 59.20 $8.20 $3.30 $4.25 5.88 pts Direct labor is a variable cost in this company. An outside vendor offered to make the product at a price of $23.05. If the product is not made internally, there would be no other use for the production facilities. None of the foxed manufacturing overhead cost could be avoided. $166,450 $77.550 ($62,700) O $140,250)
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