ABC is considering a special order for 20 gold bracelets for a wedding party. The...
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ABC is considering a special order for 20 gold bracelets for a wedding party. The usual selling price is $190 and the estimated unit cost is $85 in direct materials, $45 in direct labor, and $24 in overhead. The overhead is fixed except $4 per unit. Custom engraving for this order will add $2 in materials per bracelet and require rental of a specific machine for $200 (no other use). There would be no effect on other sales or customers.
What is the total per unit relevant cost for this special order?
ABC is considering a special order for 20 gold bracelets for a wedding party. The usual selling price is $190 and the estimated unit cost is $85 in direct materials, $45 in direct labor, and $24 in overhead. The overhead is fixed except $4 per unit. Custom engraving for this order will add $2 in materials per bracelet and require rental of a specific machine for $200 (no other use). There would be no effect on other sales or customers.
What is the total per unit relevant cost for this special order?
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