None Anglen Company manufactures and sells trophies for winners of athletic and other events. Its manufacturing plant has the capacity toproduce 18,400 trophies each month; current monthly production is 14,880 trophies. The company normally charges $105.00 pertrophy. Cost data for the current level of production are shown below:Variable costs:Direct materialsDirect laborSelling and administrativeFixed costs:ManufacturingSelling and administrative$ 462,800$ 323,300$ 17,440$ 406,840$ 75,680The company has just received a special one-time order for 920 trophies at $48.80 each. For this particular order, no variable sellingand administrative costs would be incurred. This order would also have no effect on fixed costs. Assume that direct labor is a variablecost.Required:Should the company accept this special order? Why?Note: Do not round your intermediate calculations. Round your answer to 2 decimal places.Accepting the order has a financialdisadvantageofper trophy. Therefore the companyshould notaccept the order.

To determine whether the company should accept the special order, we need to calculate the total…

Answered: Anglen Company manufactures and sells…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...

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Anglen Company manufactures and sells trophies for winners of athletic and other events. Its manufacturing plant has the capacity to
produce 18,400 trophies each month; current monthly production is 14,880 trophies. The company normally charges $105.00 per
trophy. Cost data for the current level of production are shown below:
Variable costs:
Direct materials
Direct labor
Selling and administrative
Fixed costs:
Manufacturing
Selling and administrative
$ 462,800
$ 323,300
$ 17,440
$ 406,840
$ 75,680
The company has just received a special one-time order for 920 trophies at $48.80 each. For this particular order, no variable selling
and administrative costs would be incurred. This order would also have no effect on fixed costs. Assume that direct labor is a variable
cost.
Required:
Should the company accept this special order? Why?
Note: Do not round your intermediate calculations. Round your answer to 2 decimal places.
Accepting the order has a financial
disadvantage
of
per trophy. Therefore the company
should not
accept the order.

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Carltons Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to manufacture 70,000 units of Strands, which has a per-unit direct material cost of $10 and a per-unit direct labor cost of $60. It also expects to manufacture 30.000 units of Shapes, which has a per-unit material cost of $15 and a per-unit direct labor cost of $40. It is estimated that Strands will use 140,000 machine hours and Shapes will require 60,000 machine hours. Historically, the company has used the traditional allocation method and applied overhead at a rate of $21 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is shown: The cost driver for each cost pool and its expected activity is shown: A. What is the per-unit cost for each product under the traditional allocation method? B. What is the per-unit cost for each product under ABC costing?
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