Cost Management: A Strategic Emphasis
Cost Management: A Strategic Emphasis
7th Edition
ISBN: 9780077733773
Author: Edward Blocher, David Stout, Paul Juras, Gary Cokins
Publisher: McGraw-Hill Education
Question
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Chapter 11, Problem 22E

1.

To determine

Explain the reason for the unit cost decrease from $11 to $10 as production volume increases from 40,000 units to 60,000 units.

2.

To determine

Mention that the sales manager of the manufacturer, GI will be correct and state the bid price for the product.

3.

To determine

Mention several additional considerations, when determining how much to bid on this special order, GI will consider.

4.

To determine

Calculate the overall cost of opportunity if the company lost sales of 5,000 units to its existing customers assuming a standard selling price of $20 per unit, by approving the special order.

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Chapter 6: Job costing Steel Manufacturing uses a job order costing system. During one month, Steel purchased $188,000 of raw materials on credit; issued materials to the production of $215,000 of which $10,000 were indirect. Steel incurred a factory payroll of $159,000, of which $20,000 was indirect labor. Steel uses a predetermined overhead rate of 150% of direct labor cost. The total manufacturing costs added during the period are___.
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