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Exercise 4-6A (Alge) Alle cating overhead costs among preducts LO 4-3 Walton Company makes three products in its factoryplastic cups, plastic tablecloths, and plastic bottles.
Exercise 4-6A (Alge) Alle cating overhead costs among preducts LO 4-3 Walton Company makes three products in its factoryplastic cups, plastic tablecloths, and plastic bottles. The expected overhead costs for the next fiscal year include the following Factory manager's salary Factory utility cost Factory supplies Total overhead costs $284,660 74,000 28,000 $308,800 Walton uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows. Cups Tablecloths Bottles Total machine hours 280 Hours 700 950 1,930 Required 4. Allocate the budgeted overhead costs to the products. Allocated Cost Product Allocation Rate * Weight of Base Cups Tablecloths Bottles Total x x Exercise 6-6A (Algo) Special order decision LO 6-2 Jordan Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Jordan's normal sales territory, asks Jordan to pour 43 slabs for Lancing's new development of homes. Jordan has the capacity to build 480 slabs and is presently working on 100 of them. Lancing is willing to pay only $2.510 per slab. Jordan estimates the cost of a typical job to include unit-level materials, $830; unit-level labor, 5580; and an allocated portion of facility-level overhead, $1,180. Required Calculate the contribution to profit from the special order. Should Jordan accept or reject the special order to pour 43 slabs for $2.510 each? Contribution to profit Should Jordan accept or reject the special order
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