I just want answer i'm not sure which option is true. Question: General AccountWiacek Corporation has received a request for a special order of 5,100units of product F65 for $28.10 each. Product F65's unit product cost is$27.55, determined as follows:Direct materials$3.15Direct labor$ 8.45Variable manufacturing overhead$ 7.55Fixed manufacturing overhead$ 8.40Unit product cost$ 27.55Direct labor is a variable cost. The special order would have no effect onthe company's total fixed manufacturing overhead costs. The customerwould like modifications made to product F65 that would increase thevariable costs by $4.40 per unit and that would require an investment of$15,000 in special molds that would have no salvage value. This specialorder would have no effect on the company's other sales. The companyhas ample spare capacity for producing the special order.If the special order is accepted, the company's overall net operatingincome would increase (decrease) by:A. ($34,635)B. $8,205C. $2,805D. ($86,955)

To determine the impact on net operating income, we need to calculate the incremental profit or loss…

Answered: Question: General Account Wiacek…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

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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The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
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Wehrs Corporation has received a request for a special order of 9,900 units of product K19 for $47.40 each. The normal selling price of this product is $52.50 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product K19 is computed as follows: Direct materials. Direct labor Variable manufacturing overhead i Fixed manufacturing overhead Unit product cost $ 18.20 7.50 4.70 7.60 $38.00 Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product K19 that would increase the variable costs by $7.10 per unit and that would require a one-time investment of $46,900 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. Required: Determine the effect on the company's total net…
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Wehrs Corporation has received a request for a special order of 9,800 units of product K19 for $47.50 each. The normal selling price of this product is $52.60 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product K19 is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product.cost $ 18.30 7.60 4.80 7.70 $ 38.40 Direct labor is a varlable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product K19 that would increase the variable costs by $7.20 per unit and that would require a one-time investment of $47,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. Required: Determine the effect on the company's total net…
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A customer has asked Lalka Corporation to supply 4,500 units of product H60, with some modifications, for $42.70 each. The normal selling price of this product is $49.35 each. The normal unit product cost of product H60 is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $ 16.20 2.80 10.00 9,40 $ 38.40 Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product H60 that would increase the variable costs by $5.30 per unit and that would require a one-time investment of $24,750 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. Required: Determine the financial advantage or disadvantage of accepting the special order.

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