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Study question Mcniff Corporetion makes a range of products. The company's predetermined overhead rate is $18 per direct lebor-hour, which was calculated using the following
Study question Mcniff Corporetion makes a range of products. The company's predetermined overhead rate is $18 per direct lebor-hour, which was calculated using the following budgeted data: 21,000 Management is considering a special order for 600 units of product 096S at $54 each. The normal selling price of product 0965 is $65 and the unit product cost is determined as follows s 27.00 16.00 18.00 Direct Labor $61.00 If the special order were accepted, normal sales of this and other products would not be affected. The company has ample excess capacity to produce the additional units. Assume that direct labor is a variable cost, variable manufacturing overhead is really driven by direct labor-hours, and total fixed manufacturing overhead would not be affected by the special order The financial advantage (disadvantage) for the company as a result of accepting this special order would be
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