5. Snyder, Inc., which has excess capacity,received a special order for 4,200 units at a price of $17 perunit. Currently, production and sales are anticipated to be 12,000units without considering the special order. Budget information forthe current year follows. Sales $ 240,000 Less: Cost of goods sold 186,000 Grossmargin $ 54,000 Cost of goods sold includes $30,000 offixed manufacturing cost. If the special order is accepted, thecompany's income will:
increase by $6,300.
decrease by $6,300.
increase by $16,800.
decrease by $16,800.
None of these.
7.Song, a division of Carolina Enterprises,currently makes 160,000 units of a product that has created anumber of manufacturing problems. Song's costs follow.
Manufacturing costs: Variable $ 630,000 Fixed 183,000 Allocated corporate administrative cost 64,000
If Song were to discontinue production, fixed manufacturing costswould be reduced by 70%. The relevant cost of deciding whether thedivision should purchase the product from an outside supplieris:
$813,000.
$822,100.
$630,000.
$758,100.
$684,900.
5. Snyder, Inc., which has excess capacity,received a special order for 4,200 units at a price of $17 perunit. Currently, production and sales are anticipated to be 12,000units without considering the special order. Budget information forthe current year follows. Sales $ 240,000 Less: Cost of goods sold 186,000 Grossmargin $ 54,000 Cost of goods sold includes $30,000 offixed manufacturing cost. If the special order is accepted, thecompany's income will:
increase by $6,300.
decrease by $6,300.
increase by $16,800.
decrease by $16,800.
None of these.
7.Song, a division of Carolina Enterprises,currently makes 160,000 units of a product that has created anumber of manufacturing problems. Song's costs follow.
| Manufacturing costs: | |
| Variable | $ 630,000 |
| Fixed | 183,000 |
| Allocated corporate administrative cost | 64,000 |
If Song were to discontinue production, fixed manufacturing costswould be reduced by 70%. The relevant cost of deciding whether thedivision should purchase the product from an outside supplieris:
$813,000.
$822,100.
$630,000.
$758,100.
$684,900.
Related questions
1. Lea Company produces hand tools. Budgeted sales for March are 10,700 units. Beginning finished goods inventory in March is budgeted to be 2,300 units, and ending finished goods inventory is budgeted to be 2,000 units. How many units will be produced in March?
A 10,700
B 11,000
C 10,400
D 15,000
2. Peach has received a special order for 10,000 units of its product. The product normally sells for $29 and has the following manufacturing costs:
| Per unit | |||
| Direct materials | $ | 6 | |
| Direct labor | 5 | ||
| Variable manufacturing overhead | 3 | ||
| Fixed manufacturing overhead | 11 | ||
| Unit cost | $ | 25 | |
Assume that Peach has sufficient capacity to fill the order. What price should Peach charge to make a $10,000 incremental profit?
A $25
B $15
C $22
D $29
3. Manufacturing overhead was estimated to be $365,400 for the year along with 20,300 direct labor hours. Actual manufacturing overhead was $380,000, and actual labor hours were 21,700. To dispose of the balance in the Manufacturing Overhead account, which of the following would be correct?
A Manufacturing Overhead would be debited for $14,600
B Manufacturing Overhead would be debited for $10,600
C Manufacturing Overhead would be credited for $14,600
D Manufacturing Overhead would be credited for $10,600
4. Pinto Co. has received a special order for 2,900 units of its product at a special price of $190. The product normally sells for $230 and has the following manufacturing costs:
| Per unit | |||
| Direct materials | $ | 62 | |
| Direct labor | 53 | ||
| Variable manufacturing overhead | 42 | ||
| Fixed manufacturing overhead | 69 | ||
| Unit cost | $ | 226 | |
Assume that Pinto Co. has sufficient capacity to fill the order without harming normal production and sales. If Pinto Co. accepts the order, what effect will the order have on the companyâs short-term profit?
A $95,700 increase
B$104,400 increase
C $116,000 decrease
D$104,400 decrease
5. Jillian Inc. produces leather handbags. The production budget for the next four months is: July 5,200 units, August 7,600, September 7,500, October 8,300. Each handbag requires 1.9 hours of unskilled labor (paid $15 per hour) and 3.2 hours of skilled labor (paid $23 per hour). What will be the total labor cost for the month of August?
A $174,800
B $126,360
C $559,360
D $775,960
At the end of the year, a company offered to buy 4,920 units of a product from X Company for a special price of $12.00 each instead of the company's regular price of $19.00 each. The following information relates to the 61,200 units of the product that X Company made and sold to its regular customers during the year:
| Per-Unit | Total | ||
| Cost of goods sold | $7.61 | $465,732 | |
| Period costs | 2.30 | 140,760 | |
| Total | $9.91 | $606,492 | |
Fixed cost of goods sold for the year were $113,832, and fixed period costs were $70,380. Variable period costs include selling commissions equal to 2% of revenue.
5. Profit on the special order is $25,092 (this is right)
6. Assume the following two changes for the special order: 1) variable cost of goods sold will decrease by $0.80 per unit, and 2) there will be no selling commissions. What will be the effect of these two changes on the special order profit?______
The following information is for X Company's two products, A and B, last year:
| Product A | Product B | ||
| Sales | $92,940 | $94,280 | |
| Total variable costs | 51,117 | 56,568 | |
| Total fixed costs | 52,100 | 30,530 | |
| Profit | $-10,277 | $7,182 | |
Because of the reported loss for Product A, X Company is considering dropping it. Further analysis reveals that $25,130 of Product A's fixed costs and $7,510 of Product B's fixed costs are common costs that the company allocates to the two products.
7. If X Company drops Product A, company profits will change by $-14,853 (this is right)
8. Assume that sales of Product B can be increased by $17,510 if Product A is dropped. What will be the effect of this increase on company profits? _____.
NEED HELP WITH 6 AND 8
