Started on Tuesday, 6 March 2018, 8:04 AM State Finished Completed on Tuesday, 6 March 2018, 8:04 AM Time taken 25 secs Marks 11.00/12.00 Grade 4.58 out of 5.00 (9296) CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 1 Partially correct Mark 11.00 out of 12.00 P Flag question Special Order Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per period of 8,000 units of product that sell for $60 each. For the foreseeable future, regular sales volume should continue to equal normal capacity. Direct material $100,800 Direct labor 62,400 46,800 Variable manufacturing overhead Fixed manufacturing overhead (Note 1) Selling expense (Note 2) 38,400 35,200 Administrative expense (fixed) 15,000 $298,600 Notes: 1. Beyond normal capacity, fixed overhead costs increase $1,800 for each 500 units or fraction thereof until a maximum capacity of 10,000 units is reached. 2. Selling expenses consist of a 6% sales commission and shipping costs of 80 cents per unit. Glendale pays only three-fourths of the regular sales commission on sales totaling 501 to 1,000 units and only two-thirds the regular commission on sales totaling 1,000 units or more. Glendale's sales manager has received a special order for 1,200 units from a large discount chain at a price of $36 each, F.O.B. factory. The controller's office has furnished the following additional cost data related to the special order: 1. Changes in the product's design will reduce direct material costs $1.50 per unit. 2. Special processing will add 20% to the per-unit direct labor costs. 3. Variable overhead will continue at the same proportion of direct labor costs