Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. kneller co. manufactures and sells medals for winn

Kneller Co. manufactures and sells medals for winners of athletic and other events. Its manufacturing...

80.2K

Verified Solution

Question

Accounting

Kneller Co. manufactures and sells medals for winners of athletic and other events. Its manufacturing plant has the capacity to produce 22,000 medals each month; current monthly production is 10,000 medals. The company normally charges $86 per medal. Cost data for the current level of production are shown below:

Variable costs:
Direct materials $ 416,900
Direct labor $ 133,400
Selling and administrative $ 21,600
Fixed costs:
Manufacturing $ 124,600
Selling and administrative $ 68,200

The company has just received a special one-time order for 400 medals at $74 each. For this particular order, no variable selling and administrative costs would be incurred. This order would also have no effect on fixed costs. Assume that direct labor is a variable cost.

Required:

Should the company accept this special order?

A) Accepted

B) Not accepted

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Psychology
1.2K views

What are the central concerns of the structuralist and functionalist approaches?

Psychology
1.2K views

describe yourself as a gold color personality

Geometry
1.2K views

9 Find the area of the quadrilateral ABCD if AD BH HC 16 cm AB...

Calculus
1.2K views

For the given function, (a) find the slope of the tangent line to the graph...

Calculus
1.2K views

Evaluate the determinant of the matrix A 30 9 10 23

Accounting
1.2K views

Corporation S sold investment land to Corporation P for $100,000 cash. Corporation Ss basis in...

Accounting
1.2K views

An individual contributes property with a basis of $15000, and fair market value of $20000...

Accounting
1.2K views

Abercrombie & Fitch What is the impact on Abercrombie & Fitchs financial statements from the...

Accounting
1.2K views

Laker Company reported the following January purchases and sales data for its only product Date...

Accounting
1.2K views

Required information [The following information applies to the questions displayed below.] Each gallon of Old...

Accounting
1.2K views

suppoit department cost allocation-drect inrthod

Accounting
1.2K views

Tasty Subs acquired a delivery truck on October 1, 2021, for $18,500. The company estimates...