Overhead rate is $16

$10000 of engineering and $2 per unit of materials

3000 units for $70 each

missing text

Vandelay Industries makes several products. All products use the company wide predetermined o per direct labour hour. The company budget used the following data to calculate that rate: Variable manufacturing overhead Fixed manufacturing overhead Direct Labour hours $95,000 $209,000 19,000 A new customer has requested a special order of the popular R5N product. They want 3,000 units The new customer would require a small tweak to the design of R5N, requiring $10,000 of enginee unit of materials The normal selling price is $90 and the per unit product cost breaks down below: Direct materials Direct labour Manufacturing overhead, applied Product cost, per unit $36 $16 $32 $84 The fixed manufacturing overhead is not avoidable and has a capacity of 12,000 units. The company budgeted 9,500 units to be sold in the coming year. REQUIRED a) Determine the net dollar advantage or disadvantage of accepting the order. b) Provide one qualitative consideration to accepting or denying the offer