Humes Corporation makes a range of products. The company's predetermined overhead rate is $16 per direct labor-hour, which was calculated using the following budgeted data:<\/p>
<\/p>
Variable manufacturing overhead................... $75,000<\/p>
Fixed manufacturing overhead........................ $325,000<\/p>
Direct labor-hours.................................................. $25,000<\/p>
<\/p>
Management is considering a special order for 700 units of product J45K at $64 each. The normal selling price of product J45K is $75 and the unit product cost is determined as follows:<\/p>
<\/p>
Direct materials............................. $37.00<\/p>
Direct labor..................................... $18.00<\/p>
Manufacturing overhead applied....................$16.00<\/u><\/p>
Unit product cost................................................... $71.00<\/u> <\/p>
If the special order were accepted, normal sales of this and other products would not be affected. The company has ample excess capacity to produce the additional units. Assume that direct labor is a variable cost, variable manufacturing overhead is really driven by direct labor-hours, and total fixed manufacturing overhead would not be affected by the special order. Questions<\/u><\/strong> If the special order were accepted, what would be the impact on the company's overall profit?<\/p>", "transcribed_text": "", "related_book": { "title": "Principles Of Finance", "isbn": "979-8439388899", "edition": "1st Edition", "authors": "Julie Dahlquist, Rainford Knight", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/6290aa2348f9a_11251.jpg", "uri": "\/textbooks\/principles-of-finance-1st-edition-9798439388899", "see_more_uri": "" }, "free_related_book": { "isbn": "1409407373", "uri": "\/textbooks\/a-practical-guide-to-dealing-with-difficult-stakeholders-1st-edition-9781409407379-9781472401663", "name": "A Practical Guide To Dealing With Difficult Stakeholders", "edition": "1st Edition" }, "question_posted": "2024-06-29 02:03:22", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/for-the-beam-shear-shown-of-the-shear-and-bending", "description": "For the beam and loading shown, (a) Draw the shear and bending-moment diagrams, (b) Determine the maximum absolute values of the shear and bending moment. 120 N\/m G0 N-m D. 200 N\/m -S00 mm 100 mm 300...", "stars": 3 }, { "url": "\/study-help\/introduction-to-probability-statistics\/274-university-professors-consider-a-population-consisting-of-the-number-1981024", "description": "2.74 University Professors Consider a population consisting of the number of professors per university at small universities. 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