TB Problem Qu. 12-189 (Algo) Wehrs Corporation has received a request for a special... Wehrs Corporation has received a request for a special order of 9,800 units of product K19 for $47.50 each. The normal selling price of this product is $52.60 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product K19 is computed as follows: Direct materials Direct labor $18.30 7.60
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- Edalyn Corporation has received a request for a special order of 8,400 units of product Amity for $45.30 each. The normal selling price of this product is $50.40 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product Amity is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost es $16.10 5.40 2.60 5.50 $29.60 Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product Amity that would increase the variable costs by $5.00 per unit and that would require a one-time investment of $44,800 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. Required: Determine the effect on the company's total…TB Problem 07-171 Tullius Corporation has received a request... Tullius Corporation has received a request for a special order of 8,300 units of product C64 for $45.20 each. The normal selling price of this product is $50.30 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product C64 is computed as follows: Direct materials $ 16.00 Direct labor 5.30 Variable manufacturing overhead 2.50 Fixed manufacturing overhead 5.40 Unit product cost $ 29.20 Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product C64 that would increase the variable costs by $4.90 per unit and that would require a one-time investment of $44,700 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company…Assume a company is considering whether to accept or reject a special order opportunity to sell a customer 300 units of a slightly customized version of one of its products for $40.25. The normal selling price of this product is $48 per unit. It can fulfill the order using existing manufacturing capacity. The company’s accounting system estimates the following unit product cost for this product: Per Unit Direct materials $ 18 Direct labor 12 Manufacturing overhead 10 Total cost $ 40 The company estimates that $3 of its manufacturing overhead varies with respect to the number of units produced. The remainder of its overhead is fixed and unaffected by the volume of units produced within the relevant range. Assuming that this decision will have no effect on sales to other customers, what is the financial advantage (disadvantage) of accepting the special order? Multiple Choice $1,200 $600 $1,500 $2,175
- A customer has asked Lalka Corporation to supply 4,500 units of product H60, with some modifications, for $42.70 each. The normal selling price of this product is $49.35 each. The normal unit product cost of product H60 is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $ 16.20 2.80 10.00 9,40 $ 38.40 Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product H60 that would increase the variable costs by $5.30 per unit and that would require a one-time investment of $24,750 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. Required: Determine the financial advantage or disadvantage of accepting the special order.Assume a company is considering whether to accept or reject a special order opportunity to sell a customer 300 units of a slightly customized version of one of its products for $37.25. The normal selling price of this product is $48 per unit. It can fulfill the order using existing manufacturing capacity. The company’s accounting system estimates the following unit product cost for this product: Per Unit Direct materials $ 18 Direct labor 12 Manufacturing overhead 10 Total cost $ 40 The company estimates that $3 of its manufacturing overhead varies with respect to the number of units produced. The remainder of its overhead is fixed and unaffected by the volume of units produced within the relevant range. Assuming that this decision will have no effect on sales to other customers, what is the financial advantage (disadvantage) of accepting the special order?TB MC Qu. 13-59 (Algo) Gallerani Corporation has received... Gallerani Corporation has received a request for a special order of 5,200 units of product A90 for $28.20 each. Product A90's unit product cost is $27.75, determined as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Assume that direct laboris a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product A90 that would increase the variable costs by $4.50 per unit and that would require an investment of $16,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be: Multiple Choice O $(37,060) $6,880 $…
- 9. Bidbid Company is contemplating the acceptance of a special order has the following unit cost behavior, based on 10,000 units: Direct materials Direct labor Variable overhead OMR 4 10 8 6 Fixed overhead A foreign company wants to purchase 2,000 units at a special unit price of OMR 25. The normal price per unit is OMR 40. Should the Bidbid Company accept this order.4. SPECIAL ORDER PRICING EXO Company sells "Power V" at a unit price of P 31,000, with the following unit production costs: Direct materials P 9,000 Direct labor Variable overhead Fixed overhead A special order for 1,000 units was received from Gorgonia, a well-known Power V distributor based in Tondo. Additional shipping costs for this sale are P 4,000 per unit. 7,000 5,000 3,000 REQUIRED: What is the minimum selling price per unit for the special order if: A) Twice is operating at FULL capacity? B) Twice has EXCESS capacity? Sales Less: Variable expenses 5. CONTINUE or SHUTDOWN (SHUTTING DOWN OPERATIONS) The combined income statement of BTS Stores (Butter and Dynamite branches) is given below: Total Butter Branch P 1,200,000 (840,000) P 360,000 (210,000) P 150,000 (180,000) (P 30,000) Contribution margin Less: Traceable fixed expenses Segment margin Less: Common fixed expenses Profit (loss) Dynamite Branch P 800,000 (360,000) P 440,000 (180,000) P 260,000 (120,000) P 140,000 P…A customer has requested that Lewelling Corporation fill a special order for 2,500 units of product S47 for $30 a unit. While the product would be modified slightly for the special order, product $47's normal unit product cost is $21.40: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $ 6.10 4.00 3.20 8.10 $21.40 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product S47 that would increase the variable costs by $1.70 per unit and that would require an investment of $15,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be:
- A customer has requested that Stanford Corporation fill a special order for 9,000 units of product S47 for $20.50 a unit. While the product would be modified slightly for the special order, product S47's normal unit product cost is $14.40: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost O $(9,900) Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product S47 that would increase the variable costs by $5.00 per unit and that would require an investment of $36,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be: O $4,500 S O $54,900 O…The internal manufacturing cost per unit of a component is as follows – Direct Material $5.00 Direct Labour $10.00 Fixed costs $15.00 Total costs $30.00 (a) Given the information above, if the company buys the component, it would however have to pay $17.00, but would still have to meet its fixed cost. Should the company make or buy the component? (b) Based on your answer in (a) above name two factors that can influence the company to buy the product. 2. (a) Describe two (2) methods for allocating support costs to departments. (b) Explain why support costs are allocated to departments. Please answer question 2 thank you very much.The internal manufacturing cost per unit of a component is as follows – Direct Material $5.00 Direct Labour $10.00 Fixed costs $15.00 Total costs $30.00 (a) Given the information above, if the company buys the component, it would however have to pay $17.00, but would still have to meet its fixed cost. Should the company make or buy the component? (b) Based on your answer in (a) above name two factors that can influence the company to buy the product. 2. (a) Describe two (2) methods for allocating support costs to departments. (b) Explain why support costs are allocated to departments.