1) Robolane Incorporated manufactures and distributes small robotic toys. Because most of its orders are...
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1) Robolane Incorporated manufactures and distributes small robotic toys. Because most of its orders are via telephone or fax, numerous orders have to be reworked. The average cost of the reworked orders is $12.45 $5 for labor, $5.15 for more materials, and $2 30 for overhead. This ratio of costs holds for the average original order. On a recent day, the shop reworked 80 orders out of 800. The original cost of the 80 orders totaled $2,000. The average cost of all orders is $26 245, including rework, with an average selling price of $35
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