{hi there, if you can provide these answers in a good format it will be appreciated greatly. thank you and keep up the good work, i always leave positive reviews on questions that i post. :D }

Question 2 Part 1 (8 Marks) Advent Corporation produces tennis balls and sells them at $7 each. The costs to produce 20,000 chrome nuggets are as follows: Materials $10,000 Labour $24,000 Variable Overhead $20,000 Fixed Overhead $50,000 Advent has received a request to supply 4,000 nuggets to a foreign entity at a price of $5.00 per nugget. If the company accepts the offer, its Fixed Overheads will increase to $55,000 because it will have to purchase additional machinery. Required: a. Prepare an Incremental Analysis for the Special Order. (6 Marks) b. Advise Advent on whether to accept the order or not. (2 Marks) (12 Marks) Question 2 Part II The following report was prepared for Advent Corporation for the month of May. Budget at Actual at Difference 8,000 hrs 6,000 hrs Indirect Labor $40,000 $28,000 $12,000 F Indirect Materials $20,000 $16,200 $3,800 F Maintenance $4,000 $2,800 $1,200 F Utilities $2,400 $1,900 $500 F Total Variable $66,400 $48,900 $17,500 F TI TI TI TIT Page 2 of Supervision Insurance Property Taxes Depreciation Total Fixed $1,200 $400 $600 $1,800 $4,000 $1,440 $350 S520 $1,860 $4,170 $240 $50 $80 $60 $170 U F F Total Costs $70,400 $53,070 $17,330 F You have learnt of Flexible Budgets. Advent Corporation asked you to prepare a flexible budget as you have convinced them this type of budget offers a better analytical tool. Required: Prepare a Flexible Budget Variance Report for May