Total manufacturing overhead: 20 x 11,000 = $220, Total manufacturing overhead (0 machine hours $40 per hour)ĭirect materials: (16.40-4) x 11,000 = $134, That is, is it profitable? Why? Provide calculations in your Should the order be accepted from aįinancial point of view. Mercury will allocate $3600 of existing fixed administrative costs to the order as ‘part of the cost of doing business’.Īssume that present sales will not be affected. This figure is based, in part, on budgeted yearly fixed overhead of $750,000 and planned production activity of 60,000 machine hours (5000 per month). Total manufacturing overhead costs are applied to production at the rate of $40 per machine hour. The device will be discarded once the special order is completed. Mercury’s production supervisor notes that the company will incur $7400 in additional setup costs and will have to purchase a special device costing $ to manufacture these units. Venus requires a modification of the design that will allow a $4 reduction in direct material cost. However, Venus has offered Mercury only $31 because of the large quantity it is willing to purchase. The following additional information is available: The normal selling price of the Champion model is $53. The cost data for Mercury’s Champion model skateboard are: Direct material Direct labour (0 hours $36 per hour) Total manufacturing overhead: (0 machine hours $40 per hour) Total $16. Venus wants to market a skateboard similar to one of Mercury’s, and has offered to purchase 11 000 units if the order can be completed in three months. Several weeks ago, the firm received an inquiry from Venus Ltd. Mercury Skateboard Company manufactures skateboards. 14449906 Andrew Assessment 2B Written reflection.Week 2 - Attitudes, stereotyping and predjucie.Management Accounting Notes - Lecture notes, lectures 1 - 12.SLE346 Pernicious Anaemia Practical Report.Introductory Personal Finance FNCE20003 real mid-sem test solution.Equity assignment - Contains a problem question and an essay.Chccom005- ed17 - Communicate and work in health or community services.HUMB1000 Exam Notes - In-depth information from Compendiums 1-8.Business Studies Preliminary Year 11 Notes.MAST10006 lecture slides 2019 s1 print version.Python cheat sheet - Lecture notes 1-19.PSY388 Abnormal Behaviour mock exam - Final.Semester 2 - Lecture notes All lectures.Introducing Quantitative Research (SOCY2339).Economics for Business Decision Making (BUSS1040).Anatomy For Biomedical Science (HUBS1109).Applications of Functional Anatomy to Physical Education (HB101).Foundations of Nursing Practice 2 (NURS11154).Foundations of Property Law (LAWS12065).Evolution of Biological Diversity (BIOL1101).Pharmacology: How Drugs Work (PHRM20001).Cognition and Human Performance (PSY20006).Diploma Business Administration (BSB50415).Applied Ethics And Sustainability (SOC10236 ).Marketing and Audience Research (AMB201).Techniques in Financial Accounting (200973).History: Modern History (Year 12 - Unit 3).
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