Question
Mercury Skateboard Company manufactures skateboards. Several weeks ago, the firm received a special-order inquiry from Venus, Inc. Venus desires to market a skateboard similar to
Mercury Skateboard Company manufactures skateboards. Several weeks ago, the firm received a special-order inquiry from Venus, Inc. Venus desires to market a skateboard similar to one of Mercurys and has offered to purchase 11,000 units if the order can be completed in three months. The cost data for Mercurys Champion model skateboard follow.
Direct material | $ | 16.40 | |||||||||||||||||||
Direct labor: .25 hours at $18.00 | 4.50 | ||||||||||||||||||||
Total manufacturing overhead: .5 machine hours at $40.00 | 20.00 | ||||||||||||||||||||
Total | $ | 40.90 | |||||||||||||||||||
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