I Your Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 40,000 units per month is as follows: Direct materials. Direct labor $53.60 $5.30 $1.40 Variable manufacturing overhead Fixed manufacturing overhead..............$13.20 Variable selling and administrative expense.... $1.60 Fixed selling and administrative expense.... .$9.10 The normal selling price of the product is $91.60 per unit. An order has been received from an overseas customer for 3,000 units to be delivered this month at a special discounted price. This order would have no effect on the company's normal sales and would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $1.00 less per unit on this order than on normal sales. Direct labor is a variable cost in this company. Suppose there is ample idle capacity to produce the units required by the overseas customer and the special discounted price on the special order is $81.90 per unit. By how much would this special order increase (decrease) the company's net operating income for the month? Con (1-2

Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours

I Your Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 40,000 units per month is as follows: Direct materials Direct labor $53.60 $5.30 Variable manufacturing overhead.......$1.40 Fixed manufacturing overhead............$13.20 Variable selling and administrative expense..... S$1.60 Fixed selling and administrative expense...........$59.10 The normal selling price of the product is $91.60 per unit. An order has been received from an overseas customer for 3,000 units to be delivered this month at a special discounted price. This order would have no effect on the company's normal sales and would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $1.00 less per unit on this order than on normal sales. Direct labor is a variable cost in this company. Suppose there is ample idle capacity to produce the units required by the overseas…

Delta Company produces a single product. The cost of producing and selling a single unit of this productat the company’s normal activity level of 60,000 units per year is:Direct materials ................................................... $5.10Direct labor .......................................................... $3.80Variable manufacturing overhead ....................... $1.00Fixed manufacturing overhead ........................... $4.20Variable selling and administrative expense ....... $1.50Fixed selling and administrative expense ........... $2.40The normal selling price is $21 per unit. The company’s capacity is 75,000 units per year. An order hasbeen received from a mail-order house for 15,000 units at a special price of $14.00 per unit. This orderwould not affect regular sales.Required:1. If the order is accepted, by how much will annual profits be increased or decreased? (The order willnot change the company’s total fixed costs.)2. Assume the company has 1,000 units of this…

Delta Company produces a single product. The cost of producing and selling a single unit ofthis product at the company’s normal activity level of 60,000 units per year is: 05 Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5.10Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3.80Variable manufacturing overhead . . . . . . . . . . . . . . . . . . . $1.00Fixed manufacturing overhead . . . . . . . . . . . . . . . . . . . . . $4.20Variable selling and administrative expense . . . . . . . . . . . $1.50Fixed selling and administrative expense . . . . . . . . . . . . . $2.40 The normal selling price is $21 per unit. The company’s capacity is 75,000 units per year.An orderhas been received from a mail-order house for 15,000 units at a special price of $14.00 per unit. Thisorder would not affect regular sales.Required:  Assume the company has 1,000 units of this product left over from last year that areinferior to the…

W A Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 40,000 units per month is as follows: Direct Materials.. $18.00 Direct Labor... Variable Manufacturing OH... Fixed Manufacturing OH. Variable S&A... Fixed S&A.. $6.80 Q. What is the minimum price A. $ $1.90 $5.10 $2.40 $11.60 The normal selling price of the product is $49.1 per unit. (16 An order has been received from an overseas customer for 1,000 units to be delivered this month at a special discounted price. This order would not change the total amount of the Company's fixed costs. The variable selling and administrative expense would be $0.10 less per unit on this order than on normal sales. Direct labor is a variable cost in this company. Suppose there is not enough idle capacity to produce all the units for the overseas customer and accepting the special order would require cutting back on production of 100 units for regular…

Hairdo Products manufactures 30,000 units of part K-7 each year for use on its production line. At this level of activity, the cost per unit for part K-7 is:   Direct materials . . . . . . . . . . . . . . . . . . . . . $ 4 Direct labor . . . . . . . . . . . . . . . . . . . . . . . . $12 Variable manufacturing overhead . . . . . . . $5 Fixed manufacturing overhead . . . . . . . . . $12 Total cost per part . . . . . . . . . . . . . . . . . . . $25   An outside supplier has offered to sell 20,000 units of part K-7 each year to Hairdo Products for $21 per part. If Hairdo Products accepts this offer, the facilities now being used to manufacture part K-7 could be rented to another company at an annual rental of $100,000. However, Hairdo Products has determined that two-thirds of the fixed manufacturing overhead being applied to part K-7 would continue even if part K-7 were purchased from the outside supplier.   Required: Prepare computations showing how much profits will increase or decrease…

Your Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 40,000 units per month is as follows: $18.00 $6.80 $2.40 $11.60 $1.90 $5.10 Direct materials. Direct labor. Variable manufacturing overhead.. Fixed manufacturing overhead. Variable selling & administrative expense. Fixed selling & administrative expense . The normal selling price of the product is $51.10 per unit. An order has beleh received from an overseas customer for 2,000 units to be delivered this month at a special discounted price of $41.60 per unit. This order would have no effect on the company's normal sales and would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $0.50 less per unit on this order than on normal sales. There is ample idle (excess) capacity to produce the units required by the overseas customer. By how much would this special order increase…

Delta Company produces a single product. The cost of producing and selling a single unit of thisproduct at the company’s normal activity level of 60,000 units per year is:Direct materials $5.10Direct labor $3.80Variable manufacturing overhead $1.00Fixed manufacturing overhead $4.20Variable selling and administrative expense $1.50Fixed selling and administrative expense $2.40The normal selling price is $21 per unit. The company’s capacity is 75,000 units per year. Anorder has been received from a mail-order house for 15,000 units at a special price of $14.00 perunit. This order would not affect regular sales or the company’s total fixed costs.Required:What is the financial advantage (disadvantage) of accepting the special order?

Andretti Company has a single product called a Dak. The company normally produces and sells 60,000Daks each year at a selling price of $32 per unit. The company’s unit costs at this level of activity aregiven below:Direct materials ................................... $10.00Direct labor .......................................... 4.50Variable manufacturing overhead ....... 2.30Fixed manufacturing overhead ........... 5.00 ($300,000 total)Variable selling expenses ................... 1.20Fixed selling expenses ........................ 3.50 ($210,000 total)Total cost per unit ............................... $26.50A number of questions relating to the production and sale of Daks follow. Each question is independent.Required:1. Assume that Andretti Company has sufficient capacity to produce 90,000 Daks each year without anyincrease in fixed manufacturing overhead costs. The company could increase its sales by 25% abovethe present 60,000 units each year if it were willing to increase the…