John and Patricia are auditors for a regional CPA firm and travel regularly to client locations. The firm invoices their time to clients at a rate of $$\frac{105}{?}$ hour as spon as jobs are completed. The firm recognizes the cost of their labor at $$\frac{60}{?}$ hour, including payroll taxes and benefits.

$($a$1)$ If John and Patricia spend a combined $15$ hours at one client and complete the audit while there, how much labor cost will the firm recognize for this job?

Labor cost

$

Ruth was attempting to estimate a model for her small business's overhead costs. She is $99\mathrm{.}9\%$ sure that overhead costs are driven primarily by production, but she also knows that this cost isn't entirely variable. So she grabbed the last $8$ months of production and overhead cost data, listed it out, and plotted it as follows.

$\backslash$table$[[$Month$,$# of Units Produced,Overhead Cost$],[1,250,$$$2,730],[2,210,1,990],[3,280,2,440],[4,340,3,070],[5,360,2,740],[6,320,2,980],[7,270,2,440],[8,290,3,240]]$

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Knowledge Check

Adjustments are itemized on $$

Form W$4$

Schedule $1$

Form $1040$

Form W$2$

Dorothy could not stop thinking about a phone call she had received earlier. A potential customer h$$d the nerve to call and ask if her

company could give him a special deal on its main product, a bicycle helmet. Since Dorothy knew the product cost of the helmet is $$14,$

she quickly said no to his offer of $$9\mathrm{.}90$ per unit. After thinking about it all day, though, she is now wondering if she did the right thing.

The helmet production line has enough capacity available to produce the $70$ helmets the customer requested. The detailed per unit

product costs include DM of $$3,$ DL of $$3,$ variable MOH of $$3,$ and fixed MOH of $$5.$

According to this information, should Dorothy have accepted the special order?

Additional contribution margin for company $

Dorothy

have accepted the special order.