1. For July, you have received a special offer of 8,000 cases of cookies at a total price of $80,000. Your current production capacity per month is 200,000 cases. At the end of June finished goods ending inventory was 48,750 cases. The event organizers ordering these cookies have requested a special summer themed wrapping that will cost $1,800 for you to set-up. Should you accept or reject this offer? Why?

1. Determine over- or under-applied overhead and close to cost of goods sold. Actual OH costs are given in table 13 (look at #11 for actual DL hours used to apply OH). Determine the new cost of goods sold amount. Table 13 Actual OH cost for Quarter 2

Description	Cost
Indirect Materials	$32,400
Indirect Labor	$37,000
Machine Maintenance	$17,400
Electricity	$18,200
Depreciation	$24,300
Quality Testing	$43,820

Amount of applied OH:

Amount of actual OH:

Under or Over- Applied Amount:

New COGS amount:

Table 11 Direct Labor Variances
Rate Variance	69,905	140490
		139810
Efficiency Variance	-2,389,010	18
		18.5
Total Variance	-2,319,105
		Favorable