Janesky Company has been asked by a customer to ship an additional 235 units of their product as a special emergency order. You could do this on overtime during the weekend when labor costs would be time and a half. Sufficient materials are available in-house. Units sold last month 6,271 Direct materials $179,952 Direct labor $294,329 Manufacturing variable overhead $279,062 Selling and administrative costs $395,017 If the policy on such special orders has a markup (over cost) of 18%, what should you charge for the 235 units?
Janesky Company has been asked by a customer to ship an additional 235 units of their product as a special emergency order. You could do this on overtime during the weekend when labor costs would be time and a half. Sufficient materials are available in-house. Units sold last month 6,271 Direct materials $179,952 Direct labor $294,329 Manufacturing variable overhead $279,062 Selling and administrative costs $395,017 If the policy on such special orders has a markup (over cost) of 18%, what should you charge for the 235 units?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Janesky Company has been asked by a customer to ship an additional 235 units of their product as a special emergency order. You could do this on overtime during the weekend when labor costs would be time and a half. Sufficient materials are available in-house.
Units sold last month | 6,271 |
Direct materials | $179,952 |
Direct labor | $294,329 |
Manufacturing variable |
$279,062 |
Selling and administrative costs | $395,017 |
If the policy on such special orders has a markup (over cost) of 18%, what should you charge for the 235 units?
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