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Concept Introduction:
Special Order: Special Order are the orders which company does not anticipate while preparing their budget for the year. These order are the special opportunity for the company to earn additional revenue.
Excess Capacity: The Excess production capacity is the capacity of machine to produce the extra product without harming the original production plans.
Variable Cost: The variable cost are the cost which is directly associated with output. This cost includes direct labour cost and material cost, etc.
Fixed Cost : Fixed Cost are the cost which is independent of output. It includes rental cost. This cost remains constant throughout the relevant range of output.
Requirement 1
To Prepare:
1. Differential analysis to show whether Hungry-Cardz to accept special sales order or not
Requirement 2
To Prepare:
1. Differential Analysis for Hungry Cardz to accept special order , if it involves fixed cost of $5,000
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Chapter 25 Solutions
Horngren's Accounting (11th Edition)
- ansarrow_forward1 Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs. 2 Of the total insurance, 66% relates to the Factory Plant & Equipment & 33% relates to general & administrative costs. 3 The property taxes should be shared: 75% manufacturing & 25% general & administrative costs. Required: i) Calculate the raw material used in production by Unique School Supplies & Uniforms. ii) What is the total factory overhead costs incurred by Unique School Supplies & Uniforms during the period? iii) Determine the prime cost & conversion cost of the knapsacks manufactured. iv) Prepare a schedule of cost of goods manufactured for the year ended June 30, 2024, clearly showing total manufacturing cost & total manufacturing costs to account for. v) What is the selling price per knapsack if Unique School Supplies & Uniforms manufactured 925 knapsacks for the Debe High School and uses a mark-up of 25% on cost? vi) How does the format of the income statement for a…arrow_forwardexpert of account answerarrow_forward
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