Q:1 Special order. GamesAhoy Corporation produces cricket bats for kids that it sells for $36 each. At capacity, the company can produce 50,000 bats a year. The costs of producing and selling 50,000 bats are as follows: Cost per Bat Total Costs Direct materials 13 650,000 250,000 Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses 2 100,000 300,000 150,000 100,000 $1,550,000 2 Total Costs 31

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Q:1 Special order. GamesAhoy Corporation produces cricket bats for kids that it sells for $36 each. At capacity, the
company can produce 50,000 bats a year.
The costs of producing and selling 50,000 bats are as follows:
Cost per Bat
Total Costs
Direct materials
13
650,000
Direct manufacturing labor Variable
manufacturing overhead Fixed
manufacturing overhead Variable
selling expenses
Fixed selling expenses
250,000
100,000
300,000
150,000
100,000
Total Costs
31
$1,550,000
Additional information:
GamesAhoy is currently producing and selling 40,000 bats.
At this level of production and sales, its fixed costs are the same as given in the preceding table.
FieldTactics Corporation wants to place a one-time special order for 10,000 bats at $23 each.
GamesAhoy will incur no variable selling costs for this special order.
Should GamesAhoy accept this one-time special order? Show your calculations.
을 526320
Transcribed Image Text:Q:1 Special order. GamesAhoy Corporation produces cricket bats for kids that it sells for $36 each. At capacity, the company can produce 50,000 bats a year. The costs of producing and selling 50,000 bats are as follows: Cost per Bat Total Costs Direct materials 13 650,000 Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses 250,000 100,000 300,000 150,000 100,000 Total Costs 31 $1,550,000 Additional information: GamesAhoy is currently producing and selling 40,000 bats. At this level of production and sales, its fixed costs are the same as given in the preceding table. FieldTactics Corporation wants to place a one-time special order for 10,000 bats at $23 each. GamesAhoy will incur no variable selling costs for this special order. Should GamesAhoy accept this one-time special order? Show your calculations. 을 526320
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