Wehes Corporation has received a request for a special order of 9.200 units of product K19 for $4610 each. The normal selling price ofthis product is $51.20 each, but the units would need to be modified slightly for the customer. The normal unit product cost of productK19 is computed as followsDirect materialsDirect JaborVariable manufacturing overheadFixed Manufacturing overhead5 16.906.203.406.30$32.00Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs Thecustomer would like some modifications made to product K19 that would increase the variable costs by $5 80 per unit and that wouldrequire a one-time investment of $45,600 in special molds that would have no salvage value. This special order would have no effecton the company's other sales. The company has ample spare capacity for producing the special orderRequired:Determine the effect on the company's total net operating income of accepting the special order.

Name: Wehes Corporation has received a request for a special order of 9.200
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Wehes Corporation has received a request for a special order of 9.200 units of product K19 for $4610 each. The normal selling price ofthis product is $51.20 each, but the units would need to be modified slightly for the customer. The normal unit pro

When special order situation arise, management calculates relevant cost to complete order with…

Business

Accounting

Wehes Corporation has received a request for a special order of 5,200 units of product K19 for $4610 each. The normal selling price of this product is $51.20 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 Jaber Variable manufacturing overhead Fixed manufacturing overhead Dit product cost 5 16.50 6.20 3.40 6.30 $ 32.00 Direct labor is a variable cost. The special order would have no effect on the company's total foxed manufacturing overhead costs. The customer would like some modifications made to product K19 that would increase the variable costs by $5 80 per unit and that would require a one-time investment of $45,600 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 net operating income of accepting the special order

Wehes Corporation has received a request for a special order of 5,200 units of product K19 for $4610 each. The normal selling price of this product is $51.20 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 Jaber Variable manufacturing overhead Fixed manufacturing overhead Dit product cost 5 16.50 6.20 3.40 6.30 $ 32.00 Direct labor is a variable cost. The special order would have no effect on the company's total foxed manufacturing overhead costs. The customer would like some modifications made to product K19 that would increase the variable costs by $5 80 per unit and that would require a one-time investment of $45,600 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 net operating income of accepting the special order

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Costner produces two product lines. Prices/costs per unit follow. "W" "H" Selling price $60 $45 Direct material $16 $12 Direct labor ($20/hour) $15 $10 Variable overhead $13 $8 Demand for "W" is 216 units and "H" is 342 units If Costner has only 177 labor hours available, how many units of "W" should be manufactured? Round your final answer to the nearest whole unit.
A customer has requested a special order of ABC Co's primary product and has offered to pay $30 per unit. While the product would be modified slightly for the special order, the product's normal information is provided below Sales price per unit Direct materials per unit Direct labor per unit $25.50 Total Fixed Costs $6.20 $2 Variable manufacturing overhead per unit $ 4.40 $1,150,000 The customer would like modifications made to each product that would increase the variable costs by $2.20 per unit and that would require an investment of $24,000 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. How large would the special order have to be in units in order for ABC Co to break even on the special order?
JSON-2603 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product Y8 X5 Z9 $ 90.00 $ 66.00 $ 80.00 Selling price Variable expenses: Direct materials 18.00 27.00 27.00 54.00 Other variable expenses Total variable expenses Contribution margin 31.50 9.00 47.00 56.00 $ 24.00 49.50 $36.00 $16.50 Contribution margin ratio 40% 25% 30% JSON-2603 has enough demand to sell 700 units of each product per month. Each product requires the same direct materials in its production. The direct materials cost $3 per pound. The company will at most have 5,700 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-2603 can earn per month using its 5,700 pounds of direct materials optimally? Ⓒ$ 31,200 $ 33,700 Ⓒ$ 16,800 Ⓒ$ 14,400
Frannie Fans currently manufactures ceiling fans that include remotes to operate them. The current cost to manufacture 10,020 remotes is as follows: Direct materials Direct labor Variable overhead Fixed overhead Total Frannie is approached by Lincoln Company, which offers to make the remotes for $18 per unit. Required: Cost 10 $ 65,130 $ 55,110 $ 30,060 $ 50,100 $ 200,400 1. Compute the difference in cost per unit between making and buying the remotes if none of the fixed costs can be avoided. What is the change in net income, if Frannie Fans buys the remotes? 2. Compute the difference in cost per unit between making and buying the remotes if $20,040 of the fixed costs can be avoided. What is the change in net income, if Frannie Fans buys the remotes? 3. What is the change in net income if fixed cost of $20,040 can be avoided and Frannie could rent out the factory space no longer in use for $20,040? Complete this question by entering your answers in the tabs below. Required 1 Required…
Help
Dinesh Bhai
Gadubhai
Epsilon Company can produce a unit of product for the following costs: Direct material $ 8.10 Direct labor 24.10 Overhead 40.50 Total product costs per unit $ 72.70 An outside supplier offers to provide Epsilon with all the units it needs at $64.55 per unit. If Epsilon buys from the supplier, the company will still incur 30% of its overhead. Epsilon should choose to:
Bridgeport Company manufactures and sells two products. Relevant per-unit data concerning each product follow: Selling price Variable costs Machine hours Product Basic $43.00 $19.00 0.50 Show Transcribed Text Calculate the contribution margin per machine hour for each product. Question Part Score Contribution margin per machine hour $ Basic eTextbook and Media Deluxe Deluxe $52.00 $23.30 Bridgeport should manufacture the Basic 0.70 If 1,800 additional machine hours are available, which product should Bridgeport manufacture? - Show Transcribed Text Total contribution margin $ Basic Prepare an analysis showing the total contribution margin if 1,800 additional hours are: (1) Divided equally between the products. product. $ Deluxe Total contribution margin $ (2) Allocated entirely to the product identified in part (b).
Mercury Bowie Sdn Bhd manufactures two products, the Y and the Z, which have the following standard selling price and standard costs per unit. Y Z RM RM Standard Selling Price 110 118 Direct Materials (RM4 per kg) 32 16 Direct Labour (RM10 per direct labour hour) 60 80 Variables Overhead (RM1 per machine hour) 4 6 During the next accounting period, the availability of resources are expected to be subjects to the following limitations: Direct Materials 3440 kg Direct Labour Hours 2880 hours Machine capacity 2760 hours The marketing department estimated that the maximum sales potential for product Y is limited to 420 units. There is no sales limitation for product Z. You are asked to advise how these limited facilities and resources can best be used so as to gain the optimum benefit from them. Required: a.Determine by graphical means the optimal mix of Y and Z at Mercury Bowie Bhd Sdn…
Please help me with show all calculation thanku
Sheffield Corp. incurs the following costs to produce 10500 units of a subcomponent: Direct materials Direct labor Variable overhead Fixed overhead $(3600). $9200 Ⓒ$8150. $950. $(950). 11750 13000 An outside supplier has offered to sell Sheffield the subcomponent for $2.80 a unit. No fixed costs are avoidable. If Sheffield accepts the offer, it could use the production capacity to produce another product that would generate additional income of $3600. The increase (decrease) in net income from accepting the offer would be 20800