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aterials bor overhead lable costs Order Order (Decrease)

aterials bor overhead lable costs Order Order (Decrease)

FINANCIAL ACCOUNTING
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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3 Prepare an incremental analysis for the Carla Vista Fiber. (Enter negative amounts using either a negative sign preceding the number eg. 45 or parentheses eg. (45)) Revenues Variable costs Direct materials Direct labor Variable overhead Total variable costs Net income Reject Order Should Caria Vista Fiber accept the Army's offer? Carla Vista Fiber should the Army's offer. Accept Order Net Income Increase (Decrease) SUPPOR
Transcribed Image Text:3 Prepare an incremental analysis for the Carla Vista Fiber. (Enter negative amounts using either a negative sign preceding the number eg. 45 or parentheses eg. (45)) Revenues Variable costs Direct materials Direct labor Variable overhead Total variable costs Net income Reject Order Should Caria Vista Fiber accept the Army's offer? Carla Vista Fiber should the Army's offer. Accept Order Net Income Increase (Decrease) SUPPOR
G Carla Vista Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on clothing while managing heat. Y-Go has become very popular in undergarments for sports activities. Operating at capacity, the company can produce 1,047,000 Y-Go undergarments a year. The per unit and the total costs for an individual garment when the company operates at full capacity are as follows Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Totals Per Undergarment $1.91 0.45 107 1.59 0,33 $5.35 Total $1.999,770 471,150 1.120.290 1,664,730 345.510 $5,601,450 The US Army has approached Carla Vista Fiber and expressed an interest in purchasing 250,700 Y-Go undergarments for soldiers in extremely warm climates. The Army would pay the unit cost for direct materials, direct labor, and variable manufacturing overhead costs. In addition, the Army has agreed to pay an additional $1.02 per undergarment to cover all other costs and provide a profit Presently, Carla Vista Fiber is operating at 70% capacity and does not have any other potential buyers for Y-Go, If Carla Vista Fiber accepts the Army's affer, it will not incur any variable selling expenses related to this order Prepare an incremental analysis for the Carta Vista Fiber, (Enter negative amounts using either a negative sign preceding the number -45 or parentheses (45)) SUPPORT
Transcribed Image Text:G Carla Vista Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on clothing while managing heat. Y-Go has become very popular in undergarments for sports activities. Operating at capacity, the company can produce 1,047,000 Y-Go undergarments a year. The per unit and the total costs for an individual garment when the company operates at full capacity are as follows Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Totals Per Undergarment $1.91 0.45 107 1.59 0,33 $5.35 Total $1.999,770 471,150 1.120.290 1,664,730 345.510 $5,601,450 The US Army has approached Carla Vista Fiber and expressed an interest in purchasing 250,700 Y-Go undergarments for soldiers in extremely warm climates. The Army would pay the unit cost for direct materials, direct labor, and variable manufacturing overhead costs. In addition, the Army has agreed to pay an additional $1.02 per undergarment to cover all other costs and provide a profit Presently, Carla Vista Fiber is operating at 70% capacity and does not have any other potential buyers for Y-Go, If Carla Vista Fiber accepts the Army's affer, it will not incur any variable selling expenses related to this order Prepare an incremental analysis for the Carta Vista Fiber, (Enter negative amounts using either a negative sign preceding the number -45 or parentheses (45)) SUPPORT
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