Mcniff Corporation makes a range of products. The company's predetermined overhead rate is $23 per...
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Mcniff Corporation makes a range of products. The company's predetermined overhead rate is $ per direct laborhour, which was calculated using the following budgeted data: Variable manufacturing overhead $ Fixed manufacturing overhead $ Direct laborhours Management is considering a special order for units of product OS at $ each. The normal selling price of product OS is $ and the unit product cost is determined as follows: Direct materials $ Direct labor Manufacturing overhead applied Unit product cost $ If the special order were accepted, normal sales of this and other products would not be affected. The company has ample excess capacity to produce the additional units. Assume that direct labor is a variable cost, variable manufacturing overhead is really driven by direct laborhours, and total fixed manufacturing overhead would not be affected by the special order. Required: The profit loss for the company as a result of accepting this special order would be:
Mcniff Corporation makes a range of products. The company's predetermined overhead rate is $ per direct laborhour, which was calculated using the following budgeted data:
Variable manufacturing overhead $
Fixed manufacturing overhead $
Direct laborhours
Management is considering a special order for units of product OS at $ each. The normal selling price of product OS is $ and the unit product cost is determined as follows:
Direct materials $
Direct labor
Manufacturing overhead applied
Unit product cost $
If the special order were accepted, normal sales of this and other products would not be affected. The company has ample excess capacity to produce the additional units. Assume that direct labor is a variable cost, variable manufacturing overhead is really driven by direct laborhours, and total fixed manufacturing overhead would not be affected by the special order.
Required:
The profit loss for the company as a result of accepting this special order would be:
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