Piper Rose Boutique has been approached by the community college to make special polo shirts for the faculty and staff. The college is willing to buy 4,000 polos with its own design for $6.00 each. The company normally sells it shirts for $12.00 each. The company has enough excess capacity to make this order. A breakdown of the costs is as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Total cost per unit $2.00 0.50 1.50 2.50 $6.50 Should Piper Rose Boutique accept the special order made by the college? Proposal to Sell Polo Shirts to College The order should be Line Item Description Differential revenue from accepting offer Differential variable costs of additional units. Differential income (loss) from accepting the offer $ Amount
Piper Rose Boutique has been approached by the community college to make special polo shirts for the faculty and staff. The college is willing to buy 4,000 polos with its own design for $6.00 each. The company normally sells it shirts for $12.00 each. The company has enough excess capacity to make this order. A breakdown of the costs is as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Total cost per unit $2.00 0.50 1.50 2.50 $6.50 Should Piper Rose Boutique accept the special order made by the college? Proposal to Sell Polo Shirts to College The order should be Line Item Description Differential revenue from accepting offer Differential variable costs of additional units. Differential income (loss) from accepting the offer $ Amount
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...
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![Piper Rose Boutique has been approached by the community college to make special polo shirts for the faculty and staff. The college is willing to buy 4,000 polos with its own design for $6.00 each. The company normally sells its
shirts for $12.00 each. The company has enough excess capacity to make this order. A breakdown of the costs is as follows:
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
Total cost per unit
$2.00
0.50
1.50
2.50
$6.50
Should Piper Rose Boutique accept the special order made by the college?
Proposal to Sell Polo Shirts to College
The order should be
Line Item Description
Differential revenue from accepting offer
Differential variable costs of additional units
Differential income (loss) from accepting the offer $
Amount](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F39618134-6ceb-48ac-ab5a-e0c16873beed%2Ff57197ab-8407-4d03-b568-060624ba70fb%2Fdd6rxsb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Piper Rose Boutique has been approached by the community college to make special polo shirts for the faculty and staff. The college is willing to buy 4,000 polos with its own design for $6.00 each. The company normally sells its
shirts for $12.00 each. The company has enough excess capacity to make this order. A breakdown of the costs is as follows:
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
Total cost per unit
$2.00
0.50
1.50
2.50
$6.50
Should Piper Rose Boutique accept the special order made by the college?
Proposal to Sell Polo Shirts to College
The order should be
Line Item Description
Differential revenue from accepting offer
Differential variable costs of additional units
Differential income (loss) from accepting the offer $
Amount
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