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urgent pls Lab 3: Relevant Costing * Saved Anchor Company manufactures a variety of tool boxes. The firm is currently operating at 80% of its
urgent pls
Lab 3: Relevant Costing * Saved Anchor Company manufactures a variety of tool boxes. The firm is currently operating at 80% of its full capacity of hours per month. Each unit requires 30 minutes of machine time. Its sales manager has been looking for special o productive use of the excess capacity. JCL Ltd., a potential customer, has offered to buy 10,000 tool boxes at $13.5 that the entire quantity is delivered in two months. The current per-box cost data are as follows: Direct materials Direct labour (% hour at $12.00/hour) Total manufacturing overhead Total unit product cost $ 4.00 6.00 3.50 $13.50 Both fixed and variable overhead are allocated using direct labour-hours as a base. Variable overhead is $3.00 perc Without the order, Anchor would have enough business to operate at 5,280 direct labour-hours in each of the next tu regular selling price of the tool boxes is $16.50. A sales commission of 50 cents per unit is paid to sales representatie sales. No additional selling or administrative expenses are anticipated on account of accepting this special order and no co paid on this special order The nunti manager is concerned about the labour time that 10.000 boxes would require. She cannot schedule o Lab 3: Relevant Costing * Saved Anchor Company manufactures a variety of tool boxes. The firm is currently operating at 80% of its full capacity of hours per month. Each unit requires 30 minutes of machine time. Its sales manager has been looking for special o productive use of the excess capacity. JCL Ltd., a potential customer, has offered to buy 10,000 tool boxes at $13.5 that the entire quantity is delivered in two months. The current per-box cost data are as follows: Direct materials Direct labour (% hour at $12.00/hour) Total manufacturing overhead Total unit product cost $ 4.00 6.00 3.50 $13.50 Both fixed and variable overhead are allocated using direct labour-hours as a base. Variable overhead is $3.00 perc Without the order, Anchor would have enough business to operate at 5,280 direct labour-hours in each of the next tu regular selling price of the tool boxes is $16.50. A sales commission of 50 cents per unit is paid to sales representatie sales. No additional selling or administrative expenses are anticipated on account of accepting this special order and no co paid on this special order The nunti manager is concerned about the labour time that 10.000 boxes would require. She cannot schedule oStep by Step Solution
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