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Rhubarb Berhad budgeted 10,000 widgets for production during 2019. The company has capacity to produce 12,000 units. The following estimated costs were provided: Direct materials
Rhubarb Berhad budgeted 10,000 widgets for production during 2019. The company has capacity to produce 12,000 units. The following estimated costs were provided: Direct materials (RM6 per unit) Direct labour (RM15 per hour x 2 hours per unit) Variable manufacturing overhead (RM3 per unit) Fixed manufacturing overhead (RM4 per unit) RM 60,000 300,000 30,000 40,000 Required: Rhubarb Berhad received an order from a new customer who offers to purchase 1,000 widgets for a price of RM41 per widget. Demonstrate whether the company should accept the order or not
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