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Mcniff Corporation makes a range of products. The company's predetermined overhead rate is $26 per direct labor-hour, which was calculated using the following budgeted

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Mcniff Corporation makes a range of products. The company's predetermined overhead rate is $26 per direct labor-hour, which was calculated using the following budgeted data: Variable manufacturing overhead Fleed manufacturing overhead Direct labor-hours $12,000 $384,000 16,000 Management is considering a special order for 800 units of product 0965 at $74 each. The normal selling price of product 0965 is $85 and the unit product cost is determined as follows: Direct labor Hanufacturing overhead applied Unit product cost $47.00 18.00 26.00 $91.00 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 Required: The profit (loss) for the company as a result of accepting this special order would be: Loss

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