Aloha swimwear has received a special solution this question accounting Aloha swimwear has received a special order for 3,250 bikinis at a priceof $60 each. The regular average selling price is $75 per suit. The unitproduct cost is broken down as follows: direct labor, $8.50; directmaterials, $15.75; variable overhead, $3.75; and fixed overhead, $5.25.Aloha already budgeted its production at 12,000 suits. If the company hasspare capacity, what will be the incremental contribution of the specialorder to operating profit?A. $104,000.00.B. $38,187.50.C. $86,937.50.D. $48,750.00.

Step 1: Define Incremental ContributionThe incremental contribution margin that accepting a special…

Answered: Aloha swimwear has received a special…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Palladium Inc. produces a variety of household cleaning products. Palladium’s controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per DirectLabor Hour Maintenance $ 86,000 $0.20 Power 0.45 Indirect labor 140,000 2.10 Rent 35,000 Next year, Palladium expects production to require 90,000 direct labor hours. Required: 1. Prepare an overhead budget for the expected level of direct labor hours for the coming year. Palladium Inc. Overhead Budget For the Coming Year Variable costs: Rate per Hour Activity Level 90,000 Hours Maintenance $ $ Power Indirect labor Total variable cost $ Fixed costs: Maintenance $ Indirect labor Rent Total fixed costs $ Total overhead costs $ 2. Prepare an overhead budget that reflects…
Palladium Inc. produces a variety of household cleaning products. Palladium's controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per Direct Labor Hour Maintenance $86,000 $0.20 Power $0.45 Indirect Labor $140,000 $2.10 Rent $35,000 Next year, Palladium expects production to require 88,000 direct labor hours. Prepare an overhead budget that reflects production that is 15% higher than expected and for production that is 15% lower than expected.
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