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XX company budgeted 10,000 units for production during 2019. It has capacity to produce 12,000 units Fixed factory overhead is allocated to production. The following
XX company budgeted 10,000 units for production during 2019. It has capacity to produce 12,000 units Fixed factory overhead is allocated to production. The following estimated costs were provided for 10,000 units: Direct labor Variable manufacturing overhead Fixed factory overhead costs Total $ 70,000 300,000 40,000 50,000 $460,000 AN fixed costs are unavoidable. XX received an offer from another company to manufacture the 10,000 units for $39, for the same quality In this case, when XX compares between the relevant costs of making and that of buying, there will a difference of: $ Question 2 35 points QA12 LL company budgeted 100,000 units for production during 2010. The following cost per unit information is available: direct material - $5, direct labour - $10, variable manufacturing overhead $4, variable selling perut $2. Fixed manufacturing overhead per year. $300,000. LL sells at $43 market price It received a special order for 10,000 units from a new customer in a country in which LL has never done business. The customer has offered special order price $22 per unit. If LL accepts the order, it needs to incur $1 per unit as variable selling expense. LL has enough capacity to accept the order, without affecting its normal production plan. IF LL accepts this order, then the incremental contribution the order is making = $
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