Kartman Corporation makes a product with the following standard costs: Standard Quantity or Hours 7.3 pounds 0.4 hours 0.4 hours Direct materials Direct labor Variable overhead Standard Price or Rate $ 7.80 per pound $32.00 per hour $4.80 per hour Standard Cost Per Unit $ 56.94 $ 12.80 $ 1.92 In June the company's budgeted production was 4,200 units but the actual production was 4,300 units. The company used 22,950 pounds of the direct material and 2.370 direct labor-hours to produce this output. During the month, the company purchased 26,200 pounds of the direct material at a cost of $178,180. The actual direct labor cost was $57,821 and the actual variable overhead cost was $11,031. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for June is: A customer has requested that Lewelling Corporation fill a special order for 2,800 units of product S47 for $33 a unit. While the product would be modified slightly for the special order, product S47's normal unit product cost is $23.30: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $ 6.40 5.00 3.50 8.40 $ 23.30 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product S47 that would increase the variable costs by $2.00 per unit and that would require an investment of $18,000.00 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be: The following are Silver Corporation's unit costs of making and selling an item at a volume of 8,000 units per month (which represents the company's capacity): Manufacturing: Direct materials Direct labor Variable overhead Fixed overhead Selling and administrative: Variable Fixed $ 1.00 $ 2.00 $ 0.50 $ 0.40 $ 2.00 $ 0.80 Present sales amount to 7,000 units per month. An order has been received from a customer in a foreign market for 1,000 units. The order would not affect regular sales. Total fixed costs, both manufacturing and selling and administrative, would not be affected by this order. The variable selling and administrative costs would have to be incurred for this special order as well as all other sales. Assume that direct labor is a variable cost. Assume the company has 50 units left over from last year which have small defects and which will have to be sold at a reduced price for scrap. The sale of these defective units will have no effect on the company's other sales. Which of the following costs is relevant in this decision? Sardi Incorporated is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 14,000 of the components each year. The unit product cost of the component according to the company's cost accounting system is given as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $ 9.80 6.80 2.60 4.60 $ 23.80 Assume that direct labor is a variable cost. Of the fixed manufacturing overhead, 35% is avoidable if the component were bought from the outside supplier. In addition, making the component uses 3 minutes on the machine that is the company's current constraint. If the component were bought, time would be freed up for use on another product that requires 6 minutes on this machine and that has a contribution margin of $6.20 per unit. When deciding whether to make or buy the component, what cost of making the component should be compared to the price of buying the component? (Round your intermediate calculations to 2 decimal places.)