Question 2 15 Marks Signature Frameworks makes picture frames for artists. Its workshop has a capacity to produce 33,000 picture frames on a monthly basis. Its current production and sales per month is 30,000 frames and charges customers a rate of $450 a frame. The cost information for the current activity is given below: $900,000 825,000 Fixed manufacturing costs Fixed marketing costs Variable costs that vary with number of units produced: Direct materials Direct manufacturing labour Variable costs (for setups, materials handling, quality control and so on) that vary with number of batches, 300 batches x $1000 per batch Total costs 1,050,000 1,125,000 300,000 $4,200,000 Signature Frameworks has just received a special one-time-only order for 3,000 medals at $300 per frame. Accepting the special order would not affect the company's regular business. Signature Frameworks makes frames for its existing customers in batches of 100 frames (300 batches x 100 frames per batch = 30,000 frames). The special order required Signature Frameworks to make the frames in 50 batches of 60 frames a) Should Signature Frameworks accept this special order? Why or why not? Foundations of Management Accounting ACC T20076 Question 2 continued b) Show your calculations in separate columns indicating costs without one-time only special order and costs with one-time only special order. Without one With one time only time only special order special order 30,000 units 33.000 units