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pls help Saved manufactures a variety of tool boxes. The firm is currently operating at 80% of its full capacity of 6,6 Each unit requires
pls help
Saved manufactures a variety of tool boxes. The firm is currently operating at 80% of its full capacity of 6,6 Each unit requires 30 minutes of machine time. Its sales manager has been looking for special orde the excess capacity. JCL Ltd., a potential customer, has offered to buy 10,000 tool boxes at $13.50 p antity is delivered in two months. The current per-box cost data are as follows: 5 hour at $12.00/hour) ring overhead duct cost $ 4.00 6.00 3.50 $13.50 ariable overhead are allocated using direct labour-hours as a base. Variable overhead is $3.00 per dire Anchor would have enough business to operate at 5,280 direct labour-hours in each of the next two ice of the tool boxes is $16.50. A sales commission of 50 cents per unit is paid to sales representatives Hind or administrative expenses are anticipated on account of accepting this special order and no com The production manager is concerned about the labour time that 10,000 boxes would require. She cannot schedule Anchor has a policy against it. JCL will not accept fewer than 10,000 tool boxes. Therefore, in order to fill the special 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 special order. blank - be certain to enter "0" wherever required.) ANCHOR COMPANY Contribution Margin Income Statement Without Special With Special Order Order Sales commissions Direct labour S 0 0 Direct materials Fixed overhead Sales commissions Sdved Contrbuton Margin income statement Without Special With Special Order Order Sales commissions 50 Direct labour Direct materials 0 $ 0 Fixed overhead Sales commissions Fixed overhead $ 0 $ 0 Less: fixed costs Fixed overhead Income $ 0 $ 0 Saved manufactures a variety of tool boxes. The firm is currently operating at 80% of its full capacity of 6,6 Each unit requires 30 minutes of machine time. Its sales manager has been looking for special orde the excess capacity. JCL Ltd., a potential customer, has offered to buy 10,000 tool boxes at $13.50 p antity is delivered in two months. The current per-box cost data are as follows: 5 hour at $12.00/hour) ring overhead duct cost $ 4.00 6.00 3.50 $13.50 ariable overhead are allocated using direct labour-hours as a base. Variable overhead is $3.00 per dire Anchor would have enough business to operate at 5,280 direct labour-hours in each of the next two ice of the tool boxes is $16.50. A sales commission of 50 cents per unit is paid to sales representatives Hind or administrative expenses are anticipated on account of accepting this special order and no com The production manager is concerned about the labour time that 10,000 boxes would require. She cannot schedule Anchor has a policy against it. JCL will not accept fewer than 10,000 tool boxes. Therefore, in order to fill the special 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 special order. blank - be certain to enter "0" wherever required.) ANCHOR COMPANY Contribution Margin Income Statement Without Special With Special Order Order Sales commissions Direct labour S 0 0 Direct materials Fixed overhead Sales commissions Sdved Contrbuton Margin income statement Without Special With Special Order Order Sales commissions 50 Direct labour Direct materials 0 $ 0 Fixed overhead Sales commissions Fixed overhead $ 0 $ 0 Less: fixed costs Fixed overhead Income $ 0 $ 0Step by Step Solution
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