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Wildhorse Inc. manufactures two electronic products, widgets and gadgets, and has a capacity...

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Accounting

Wildhorse Inc. manufactures two electronic products, widgets and gadgets, and has a capacity of 2,200 machine hours. Prices and costs for each product are as follows:Widget$262Gadget$342Selling price per unitVariable costs per unitDirect materialsOther direct costsVariable Manufacturing overhead costs*361642472456* Variable manufacturing overhead costs are applied at a rate of $52 per machine hour.Penny Worth Industries, a potential client, has offered $262 per unit to Wildhorse for 262 special units. These 262 units would incur the following production costs and time:Direct materials$9,152Other direct costs$4,200Machine hours237

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