Question:34Perl Corp. applies to manufacturing overhead costs to productsat a budgeted indirect-cost rate of $55 per direct manufacturinglabor hour. A retail outlet has requested a bid on a special orderof a necklace. Estimates for this order include: Direct materialsof $46,000; 400 direct manufacturing labor- hours at $15 perhour; and a 50% markup rate on total manufacturing costs.The bid price for this special order is:a. $78,000.b. $62,000.c. $111,000.d. $102,000.

To calculate the bid price for the special order, follow these steps: Step 1: Calculate Total Direct…

Answered: Question:34 Perl Corp. applies to…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 39E

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Kirchoff.,manufactures a product with the following costs:Direct materials 18.00Direct labor 11.90Variable manufacturing overhead 2.10Fixed manufacturing overhead 1,422,000Variable SG&A expenses 3.60Fixed SG&A expenses 1,540,500The pricing are based on budgeted production and sales of 79,000 units per year. Required: Determine the selling price per unit, assuming a mark-up of 25% drsired under each of the following methods:1. Differential cost2. Minimum price allowed
Kirchoff.,manufactures a product with the following costs:Direct materials 18.00Direct labor 11.90Variable manufacturing overhead 2.10Fixed manufacturing overhead 1,422,000Variable SG&A expenses 3.60Fixed SG&A expenses 1,540,500The pricing are based on budgeted production and sales of 79,000 units per year. Required: Determine the selling price per unit, assuming a mark-up of 25% drsired under each of the following methods:1. Variable manufacturing cost2. Production cost3. Variable/marginal cost
A company has received a special order from a customer to make 5,000 units of acustomized product. The direct materials cost per unit of the customized product is$15, the direct labor cost per unit is $5, and the manufacturing overhead per unit is$18, including $6 of variable manufacturing overhead. If the company has sufficientavailable manufacturing capacity, what is the minimum price that can be accepted forthe special order?a. $24 c. $32b. $26 d. $38
Assume a company is considering whether to accept or reject a special order opportunity to sell a customer 300 units of a slightly customized version of one of its products for $40.25. The normal selling price of this product is $48 per unit. It can fulfill the order using existing manufacturing capacity. The company’s accounting system estimates the following unit product cost for this product: Per Unit Direct materials $ 18 Direct labor 12 Manufacturing overhead 10 Total cost $ 40 The company estimates that $3 of its manufacturing overhead varies with respect to the number of units produced. The remainder of its overhead is fixed and unaffected by the volume of units produced within the relevant range. Assuming that this decision will have no effect on sales to other customers, what is the financial advantage (disadvantage) of accepting the special order? Multiple Choice $1,200 $600 $1,500 $2,175
Assume a company is considering whether to accept or reject a special order opportunity to sell a customer 300 units of a slightly customized version of one of its products for $37.25. The normal selling price of this product is $48 per unit. It can fulfill the order using existing manufacturing capacity. The company’s accounting system estimates the following unit product cost for this product: Per Unit Direct materials $ 18 Direct labor 12 Manufacturing overhead 10 Total cost $ 40 The company estimates that $3 of its manufacturing overhead varies with respect to the number of units produced. The remainder of its overhead is fixed and unaffected by the volume of units produced within the relevant range. Assuming that this decision will have no effect on sales to other customers, what is the financial advantage (disadvantage) of accepting the special order?
Course: Costs and Budgeting A company requires 60,000 units of a certain component. The fixed costs to manufacture this component are US$ 150,000. The variable cost (VC) of manufacturing is US$ 20 each.A supplier offers the same part at US$ 22 ea.Which is better to buy or to manufacture? Explain your answer
Adams Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,300 containers follows. Unit-level materials Unit-level labor Unit-level overhead Product-level costs* Allocated facility-level costs $5,900 6,200 3,500 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Adams for $2.60 each. Required X Answer is complete but not entirely correct. $ 19,300 Yes $ 24,180 X No 11,100 26,900 a. Calculate the total relevant cost. Should Adams continue to make the containers? b. Adams could lease the space it currently uses in the manufacturing process. If leasing would produce $11,800 per month, calculate the total avoidable costs. Should Adams continue to make the containers? a. Total relevant cost a. Should Adams continue to make the containers? b. Total avoidable cost b. Should Adams continue to make the containers?
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