H2.Account The company receives a special offer for 22,000 units at $12 per unit. The additional sales would not affect its normal sales. Variablecosts per unit would be the same for the special offer as they are for the normal units. The special offer would require incrementalfixed overhead of $88,000 and incremental fixed general and administrative costs of $95,000.(a) Compute the income or loss for the special offer.(b) Should the company accept or reject the special offer?Complete this question by entering your answers in the tabs below.Required AShould the company accept or reject the special offer?Should the company accept or reject the special offer?Required[8< Required ARequired> 1401:08:51Farrow Company reports the following annual results.Contribution Margin Income StatementSales (220,000 units)Variable costsDirect materialsDirect laborOverheadContribution marginFixed costsFixed overheadFixed general and administrativeIncomePer Unit$15.002.004.002.506.502.001.50$3.00(a) Compute the income or loss for the special offer.(b) Should the company accept or reject the special offer?Required ARequired BCompute the income or loss for the special offer...Note: Round your "Per Unit" answers to 2 decimal places..SPECIAL OFFER ANALYSISAnnual Total$ 3,300,000The company receives a special offer for 22,000 units at $12 per unit. The additional sales would not affect its normal sales. Variablecosts per unit would be the same for the special offer as they are for the normal units. The special offer would require incrementalfixed overhead of $88,000 and incremental fixed general and administrative costs of $95,000.440,000880,000550,0001,430,000.Per Unit440,000330,000$ 660,000Complete this question by entering your answers in the tabs below.Total

The special order incurs the variable costs and additional fixed costs for the production. The…

Answered: The company receives a special offer…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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Indirect cost allocationCalculate the overhead surcharges for material, manufacturing & admin based on the followinginformation (numbers in kEUR, unless stated otherwise):Information on direct costsDirect material costs 5,000Direct manufacturing costs 7,500 Information on indirect costsEnergy 2,100Maintenance 500Vehicles 360Material 240Manufacturing 1,200Admin 750 Information on cost allocationEnergy 15,000 MWh manufacturing, 3,500 MWh maintenance, 1500 MWh material, 1,000 MWh admin Maintenance 5 hrs vehicles, 35 hrs manufacturing, 5 hrs material, 5 hrs adminVehicles 3 cars material, 6 cars manufacturing, 21 cars admin
Moratti Inc. has computed the following unit costs for the year just ended: • Direct material used • Direct labor • Variable manufacturing overhead • Fixed manufacturing overhead • Variable selling and administrative cost • Fixed selling and administrative cost $15 21 28 32 13 18 Under absorption costing, the product cost per unit will be: О а. 64$ O b. 96$ О с. 77$ O d. 127$
The following costs relate to Antonio Industries for the last quarter: Conversion cost Direct materials Manufacturing overhead Selling and administrative expense 1. What is Antonio's prime cost for last quarter? a. P 460,000 b. P 410,000 c. P 405,000 d. P 375,000 P 435,000 215,000 190,000 185,000
Learned Corporation has provided the following information: Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions a. Total product cost b. Total period cost Cost per Unit Cost per Period $ 5.80 $ 4.00 $ 1.60 c. Contribution margin per unit d. Total direct manufacturing cost e. Total indirect manufacturing cost $ 0.70 $ 0.60 Variable administrative expense Fixed selling and administrative expense Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,000 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,000 units? c. If the selling price is $23.30 per unit, what is the contribution margin per unit sold? Note: Round your answer to 2 decimal places. d. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred? e. If 7,000 units are produced, what is the total amount of indirect manufacturing…
Compute conversion costs given the following data: direct materials, $393,800; direct labor, $198,500; factory overhead, $200,400 and selling expenses, $36,900. Oa, 5594,200 Ob. $163,500 Oc. S398,900 Od. $792,700
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Arthur's Plumbing reported the following:Revenues $4,500Variable manufacturing costs $ 900Variable nonmanufacturing costs $ 810Fixed manufacturing costs $ 630Fixed nonmanufacturing costs $ 545Required:a. Compute contribution margin. b. Compute contribution margin percentage. c. Compute gross margin.
Given the following cost and activity observations for Smithson Company’s utilities, use the high-low method to determine Smithson's fixed costs per month. Do not round intermediate computations. Cost Machine Hours January $88,390 9,700 February 156,150 18,500 March 110,360 12,500 April 126,390 14,600 a. $11,000 b. $13,700 c. $23,300 d. $43,800
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