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Please see if you can help with this exercise by Sunday 7pm. Exercise 20-2 Gruden Company produces golf discs which it normally sells to retailers

Please see if you can help with this exercise by Sunday 7pm.

image text in transcribed Exercise 20-2 Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 18,300 golf discs is: Materials $ 9,333 Labor 26,718 Variable overhead 19,032 Fixed overhead 37,149 Total $92,23 2 Gruden also incurs 4% sales commission ($0.28) on each disc sold. McGee Corporation offers Gruden $4.77 per disc for 5,630 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Gruden. If Gruden accepts the offer, its fixed overhead will increase from $37,149 to $42,059 due to the purchase of a new imprinting machine. No sales commission will result from the special order. (a) Prepare an incremental analysis for the special order. (Round answers to 0 decimal places, e.g. 1250. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Materials Reject Order Accept Order $ $ Net Income Increase (Decrease) $ Labor Variable overhead Fixed overhead Sales commissions $ $ Net income (b) Should Gruden accept the special order? Gruden should the special order . $ Exercise 20-3 Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity: Sales (350,800 units) $4,370,000 Cost of goods sold 2,604,000 Gross profit 1,766,000 Operating expenses 839,400 Net income $926,600 Cost of goods sold was 67% variable and 33% fixed; operating expenses were 77% variable and 23% fixed. In September, Moonbeam Company receives a special order for 24,500 toasters at $7.68 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,100 of shipping costs but no increase in fixed costs. (a) Prepare an incremental analysis for the special order. (Round computations for per unit cost to 4 decimal places, e.g. 15.2500 and all other computations and final answers to the nearest whole dollar, e.g. 5,725. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Reject Order Accept Order $ $ $ $ Net Income Increase (Decrease) $ Revenues Cost of goods sold Operating expenses $ Net income (b) Should Moonbeam Company accept the special order? Moonbeam Company the special order. Exercise 20-5 Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 54% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $3.81 and $4.77, respectively. Normal production is 25,100 curtain rods per year. A supplier offers to make a pair of finials at a price of $12.75 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $44,800 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. (a) Prepare an incremental analysis to decide if Pottery Ranch should buy the finials. (Round answers to 0 decimal places, e.g. 1250. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Direct materials Make Buy Net Income Increase (Decrease) $ $ $ Direct labor Variable overhead costs Fixed manufacturing costs Purchase price $ Total annual cost (b) Should Pottery Ranch buy the finials? , Pottery Ranch should the finials. (c) $ $ Would your answer be different in (b) if the productive capacity released by not making the finials could be used to produce income of $48,014? , income would by $

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