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QUESTION 4: SPECIAL BOOKING Syarikat Pahlawan is considering a special order from the buyer for 200 units of SmartX products at a price of RM130
QUESTION 4: SPECIAL BOOKING Syarikat Pahlawan is considering a special order from the buyer for 200 units of SmartX products at a price of RM130 per unit. If this special order is accepted, the Company's normal sales will not be affected as the Company has sufficient capacity to produce additional units. The normal selling price of SmartX products is RM150 with the cost per unit of the product as follows: Direct material Direct labor (1.6 hours direct labor) Manufacturing overhead (RM28 x 1.6 hours direct labor) The cost per unit of product RM 67.00 32.00 44.80 RM 143.80 The predetermined manufacturing overhead rate for the Hero Company is RM28 per hour of direct labor calculated based on the following information: Manufacturing overhead is changing Fixed manufacturing overhead Direct working hours RM 180,000 RM 380,000 20,000 hours Be required: Identify the impact on the Company's profit if this special order is accepted. Determine whether the Company should accept or reject the special order
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