Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

wuesuun 26 of 28 View Policies Current Attempt in Progress -16 E Crane Company is the creator of Y-Go, a technology that weaves silver into

image text in transcribed
image text in transcribed
image text in transcribed
wuesuun 26 of 28 View Policies Current Attempt in Progress -16 E Crane Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor ondotin managing heat. Y-Go has become very popular in undergarments for sports activities Operating at capacity, the compact 1,090,000 Y-Go undergarments a year. The per unit and the total costs for an individual garment when the compact capacity are as follows Per Undergarment Total Direct materials $1.94 $2.114.600 Direct labor 0.59 643.100 107 1.166,300 Variable manufacturing overhead Fixed manufacturing overhead 1.46 1.591,400 Variable selling expenses 0.32 348 800 Totals $5.38 $5,864.200 Type here to search O b RI 16 Totals $5:38 55.264.200 The US Army has approached Crane and expressed an interest in purchasing 249 400 Y Gounderstores in warm climates. The Army would pay the unit cost for direct material direct labor, and variable manufacturing overhead cousin addition, the Army has agreed to pay an additional $101 per undergarment to cover the costs and provide a profit. Present Crane is operating at 70% capacity and does not have any other potential buyers for Y.Golf Crane kot the Armyster will not incur any variable selling expenses related to this order Prepare an incremental analysis for the Crane. (Enter negative amounts using either a negatives preceding the numberes 5 parentheses es. (451) Reject Order Accept Order Net Income Increase Decrease Revenues Variable costs: ON BV O II Type here to search AN 16 E parentheses (451) Reject Order Accept Order Net Income Increase Decrease Revenues $ Variable costs Direct materials 0 0 Direct labor 0 Variable overhead 0 Total variable costs Net Income 2 O O RI Type here to search

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Horngrens Financial & Managerial Accounting, The Financial Chapters

Authors: Tracie Miller Nobles, Brenda Mattison

7th Edition

0136505279, 9780136505273

More Books

Students also viewed these Accounting questions

Question

What does the term homoscedasticity mean?

Answered: 1 week ago