Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is part B? Special Order Total cost data follow for Greenf future, regular sales volume should continue to equal normal capacity eld Manufacturing Company,

What is part B? image text in transcribed
image text in transcribed
Special Order Total cost data follow for Greenf future, regular sales volume should continue to equal normal capacity eld Manufacturing Company, which has a normal capacity per period of 20,000 units of product that sell for $54 each. For the foreseeable Direct material Direct labor Variable manufacturing overhead Fixed manufacturing overhead (Note 1 Selling expense (Note 2) Administrative expense (ixed) $268.800 202,000 154,000 18,800 129,600 50.000 $923.200 Notes 1. Beyond normal capacity, fixed overhead costs increase $4500 for each 1,000 units or fraction thereof undi a maximum capacity of 24,000 units is reached. 2. Selling expenses consist of a 10% sales commission and shipping costs of $1 per unit Greenfield pays only onehe f of the regular sales commission rates on sales amounting to $3,000 or more. Greenfield's sales manager has received a special order for 2,500 units from a large discouns chein at a price of S44 each, FO.B. factory. The controlier'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 by $4 per unit 2. Special processing will add 10% to the per-unit direct labor costs. 3. Variable overhead will continue et the same proportion of direct labor costs 4. Other costs should not be affected. en analysis supporting a decision to accept or reject the special oroer.(Round computations to the nearest cent) Differential Analysis Per UnitTotal 110 000 Dfferental revenue Diferental cost Direct maceria Dinect labor Seling

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions