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Proctoring Enabled: Assignment 4 i Soved Riel Company manufactures a varlety of tool boxes. The firm is currently operating at 8 0 % of its
Proctoring Enabled: Assignment i Soved Riel Company manufactures a varlety of tool boxes. The firm is currently operating at of its full capacity of machinehours per month. Each unit requires minutes of machine time. Its sales manager has been looking for speclal orders to make productive use of the excess capacity. JCL Ltd a potential customer, has offered to buy tool boxes at $ per box, provided that the entire quantity is delivered in two months. The current perbox cost data are as follows: eBook Direct materials Direct labour hour at $ hour Total manufacturing overhead Total unit product cost $ $ Both fixed and varlable overhead are allocated using direct labourhours as a base. Varlable overhead is $ per direct labourhour. Without the order, Riel would have enough business to operate at direct labourhours in each of the next two months. The regular selling price of the tool boxes is $ A sales commission of cents per unit is paid to sales representatives on all regular sales. No additional selling or administrative expenses are anticipated on account of accepting this special order and no commissions will be paid on this special order. The production manager is concerned about the labour time that boxes would require. She cannot schedule overtime because Riel has a policy against it JCL will not accept fewer than tool boxes. Therefore, in order to fill the special order, it would be necessary for Riel Company to divert some of Its regular sales to the special order. Required: a Prepare contribution margin income statements for the twomonth period both with and without the special order. Leave no cells blank be certain to enter o wherever required. tableRiel COMPANY,Contribution Margin Income Statement,,tableWithout SpecialOrdertableWithTotal sales revenue,,,Less: variable costs,,, b Based on financial considerations, should Riel accept the order? Accept Not Accept
Proctoring Enabled: Assignment
i
Soved
Riel Company manufactures a varlety of tool boxes. The firm is currently operating at of its full capacity of machinehours per month. Each unit requires minutes of machine time. Its sales manager has been looking for speclal orders to make productive use of the excess capacity. JCL Ltd a potential customer, has offered to buy tool boxes at $ per box, provided that the entire quantity is delivered in two months. The current perbox cost data are as follows:
eBook
Direct materials
Direct labour hour at $ hour
Total manufacturing overhead
Total unit product cost
$
$
Both fixed and varlable overhead are allocated using direct labourhours as a base. Varlable overhead is $ per direct labourhour. Without the order, Riel would have enough business to operate at direct labourhours in each of the next two months. The regular selling price of the tool boxes is $ A sales commission of cents per unit is paid to sales representatives on all regular sales.
No additional selling or administrative expenses are anticipated on account of accepting this special order and no commissions will be paid on this special order.
The production manager is concerned about the labour time that boxes would require. She cannot schedule overtime because Riel has a policy against it JCL will not accept fewer than tool boxes. Therefore, in order to fill the special order, it would be necessary for Riel Company to divert some of Its regular sales to the special order.
Required:
a Prepare contribution margin income statements for the twomonth period both with and without the special order. Leave no cells blank be certain to enter o wherever required.
tableRiel COMPANY,Contribution Margin Income Statement,,tableWithout SpecialOrdertableWithTotal sales revenue,,,Less: variable costs,,,
b Based on financial considerations, should Riel accept the order?
Accept
Not Accept
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