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TB MC Qu. 4-29 The Minton Company has gathered the following... The Minton Company has gathered the following information for

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Answer #1

Overhead per unit = $5

Variable overhead = 40%

= 5 x 40%

= $2

Evaluation of Special Order
Sales ( 1,400 x 20) 28,000
Expenses:
Direct materials ( 1,400 x 10) -14,000
Direct labor ( 1,400 x 3) -4,200
Variable overhead ( 1,400 x 2) -2,800
Shipping expense ( 1,400 x 1) -1,400
Net operating profit $5,600

If the special order is accepted, Minton's operating profits will increase by $5,600.

Fourth option is correct option.

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