Answered: manufacturing overhead costs. if the…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 4MC: Overhead costs are assigned to each product based on __________________. A. the proportion of that...

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your corporation has received a special order of 6,000 units of its products for $16 each. the product unit cost is as follows: (see attached image). the special order would have no effect on the company’s total fixed manufacturing overhead costs. if the special order is accepted, variable selling costs would decrease by 40%. This special order would have no effect on the company’s other sales. the company had ample spare capacity for producing the special order. if the special order is accepted, what is the impact on the company’s overall net operating income? a) $9,600 b) $13,920 c) $16,020 d) $20,400

Direct materials...
$6.10
Direct labor. .
4.20
Variable manufacturing overhead. .
2.30
Fixed manufacturing overhead..
3.60
Variable selling expense
1.80
Fixed selling expense..
1.20
$19.20
Total cost per unit

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