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Morrison Company has a request for a special order of 20 Christmas Wreaths from a local vendor. The normal selling price is $300 and its
Morrison Company has a request for a special order of 20 Christmas Wreaths from a local vendor. The normal selling price is $300 and its unit product cost is $174, as show below: Direct Materials $89 Direct Labor $66 Manufacturing Overhead $19 Total Unit Product Cost $174 Most of the manufacturing overhead is fixed and unaffected by variations in how many Christmas Wreaths are produced in a given period. However, $9 of the overhead is variable, depending on the number of wreaths made. The customer would like a special bow tied to the wreath requiring additional materials costing $7 per wreath and would also require a special tool costing $205 that would have no other use once the special order
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