| Per unit | Total 6000 units | |
| Incremental revenue | 65 | 390000 |
| Incremental costs: | ||
| Variable costs: | ||
| Direct materials | 15 | 90000 |
| Direct labor | 12 | 72000 |
| Variable manufacturing overhead | 8 | 48000 |
| Variable selling expense | 2 | 12000 |
| Total variable cost | 37 | 222000 |
| Fixed costs: | ||
| Purchase of special machine | 9000 | |
| Total Incremental costs | 231000 | |
| Incremental net operating income(loss) | 159000 | |
| Option C $159,000 is correct |
39) The Melville Corporation mode l e de called a Pong. Melville has the capacity to...
The Melville Corporation produces a single product called a Pong. Melville has the capacity to produce 60,000 Pongs each year. If Melville produces at capacity, the per unit costs to produce and sell one Pong are as follows: Direct materials $ 15 Direct labor $ 12 Variable manufacturing overhead $ 8 Fixed manufacturing overhead $ 9 Variable selling expense $ 8 Fixed selling expense $ 3 The regular selling price for one Pong is $80. A special order has been...
The Melville Corporation produces a single product called a Pong. Melville has the capacity to produce 60,000 Pongs each year. If Melville produces at capacity, the per unit costs to produce and sell one Pong are as follows: Direct materials$15Direct labor$12Variable manufacturing overhead$8Fixed manufacturing overhead$9Variable selling expense$8Fixed selling expense$3 The regular selling price for one Pong is $80. A special order has been received by Melville from Mowen Corporation to purchase 6,000 Pongs next year. If this special order is accepted, the...
The Melrose Corporation produces a single product, Product C. Melrose has the capacity to produce 88,000 units of Product C each year. If Melrose produces at capacity, the per unit costs to produce and sell one unit of Product C are as follows: 26.30 20.60 $ 15.70 $ 18.50 $ 13.80 $ 8.90 Direct materials Direct labor . Variable manufacturing overhead Fixed manufacturing overheacd Variable selling expense Fixed selling expense The regular selling price of one unit of Product C...
The StopGap Company makes a single product. The company has the capacity to produce 43.000 units per year. Production and sales costs per unit at the activity level above are: Direct Materials... Direct Labor.......... Variable MOH...... $20 Fixed MOH....... Variable Selling Expenses......... $8 Fixed Selling Expenses............. $2 The regular selling price per unit is $60. A special order has been received from the Outside Company to purchase 8,000 units next year. For this special order, the variable selling expense would...
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 34,000 Rets per year. Costs associated with this level of production and sales are given below: Unit Total Direct materials $ 20 $ 680,000 Direct labor 6 204,000 Variable manufacturing overhead 3 102,000 Fixed manufacturing overhead 5 170,000 Variable selling expense 4 136,000 Fixed selling expense 6 204,000 Total cost $ 44 $ 1,496,000 The Rets normally sell for...
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 36,000 Rets per year. Costs associated with this level of production and sales are as follows: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Unit $19.50 12.50 7.50 13.50 4.00 6.00 Total $ 702,000 450,000 270,000 486,000 144,000 216,000 Total cost $63.00 $2,268,000 The Rets normally sell for $68 each. Fixed manufacturing...
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JL Company manufactures and sells a single product called a Widget Operating at capacity, the company can produce and sell 30,000 Rets per year. Costs associated with thislevel of producti on and sales are given below: Unit Total Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense $25$750,000 180,000 90,000 210,000 120,000 180,000 3 7 4 Total cost $51 $ 1,530,000 The Rets normally sell for $56 each....
Polaski Company manufactures and sells a single product called a
Ret. Operating at capacity, the company can produce and sell 46,000
Rets per year. Costs associated with this level of production and
sales are given below:
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 46,000 Rets per year. Costs associated with this level of production and sales are given below: Unit $ 25 Direct materials Direct labor Variable...
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 40,000 Rets per year. Costs associated with this level of production and sales are given below: Unit Total Direct materials $ 25 $ 1,000,000 Direct labor 6 240,000 Variable manufacturing overhead 3 120,000 Fixed manufacturing overhead 7 280,000 Variable selling expense 2 80,000 Fixed selling expense 6 240,000 Total cost $ 49 $ 1,960,000 The Rets normally sell for $54...
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 38,000 Rets per year. Costs associated with this level of production and sales are given below: Unit Total Direct materials $ 15 $ 570,000 Direct labor 8 304,000 Variable manufacturing overhead 3 114,000 Fixed manufacturing overhead 7 266,000 Variable selling expense 4 152,000 Fixed selling expense 6 228,000 Total cost $ 43 $ 1,634,000 The Rets normally sell for $48...