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pls help Anchor Company manufactures a variety of tool boxes. The firm is currently operating at 80% of its full capacity hours per month. Each
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Anchor Company manufactures a variety of tool boxes. The firm is currently operating at 80% of its full capacity hours per month. Each unit requires 30 minutes of machine time. Its sales manager has been looking for special productive use of the excess capacity. JCL Ltd., a potential customer, has offered to buy 10,000 tool boxes at $13. that the entire quantity is delivered in two months. The current per-box cost data are as follows: Direct materials Direct labour (4 hour at $12.00/hour) Total manufacturing overhead Total unit product cost $ 4.00 6.00 3.50 $13.50 Both fixed and variable overhead are allocated using direct labour-hours as a base. Variable overhead is $3.00 pe Without the order, Anchor would have enough business to operate at 5,280 direct labour-hours in each of the next regular selling price of the tool boxes is $16.50. A sales commission of 50 cents per unit is paid to sales representa sales. No additional selling or administrative expenses are anticipated on account of accepting this special order and no paid on this special order. The production manager is concerned about the labour time that 10.000 boxes would require. She cannot schedule Stand is concerned about the labour time that 10,000 boxes would require. She car Anchor has a policy against it. JCL will not accept fewer than 10,000 tool boxes. Therefore, in order to necessary for Anchor Company to divert some of its regular sales to the special order. Required: 1-a. Prepare contribution margin income statements for the two-month period both with and without the blank - be certain to enter "O" wherever required.) Contribution Margin Income Statement Without Special With Special Order Order Total sales revenue s 0 Less variable costs Anchor Company manufactures a variety of tool boxes. The firm is currently operating at 80% of its full capacity hours per month. Each unit requires 30 minutes of machine time. Its sales manager has been looking for special productive use of the excess capacity. JCL Ltd., a potential customer, has offered to buy 10,000 tool boxes at $13. that the entire quantity is delivered in two months. The current per-box cost data are as follows: Direct materials Direct labour (4 hour at $12.00/hour) Total manufacturing overhead Total unit product cost $ 4.00 6.00 3.50 $13.50 Both fixed and variable overhead are allocated using direct labour-hours as a base. Variable overhead is $3.00 pe Without the order, Anchor would have enough business to operate at 5,280 direct labour-hours in each of the next regular selling price of the tool boxes is $16.50. A sales commission of 50 cents per unit is paid to sales representa sales. No additional selling or administrative expenses are anticipated on account of accepting this special order and no paid on this special order. The production manager is concerned about the labour time that 10.000 boxes would require. She cannot schedule Stand is concerned about the labour time that 10,000 boxes would require. She car Anchor has a policy against it. JCL will not accept fewer than 10,000 tool boxes. Therefore, in order to necessary for Anchor Company to divert some of its regular sales to the special order. Required: 1-a. Prepare contribution margin income statements for the two-month period both with and without the blank - be certain to enter "O" wherever required.) Contribution Margin Income Statement Without Special With Special Order Order Total sales revenue s 0 Less variable costsStep by Step Solution
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