ACCTG424 Chapter Notes - Chapter 5: Earnings Before Interest And Taxes
8 Apr 2014
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Performing regular maintenance a designing new products b c quality inspection d moving materials e receiving raw materials f g updating inventory software. * if all units are inspected this would be a unit-level activity. If products are sampled, this would likely be a batch-level activity. **if the production equipment services one product line, it would be product sustaining. If the equipment is general purpose, then it would be facility sustaining. Medal plus"s operating income under the alternatives of accepting/rejecting the special order are: 1 unit cost of direct materials = ,000/9,000 = per medal. 2 unit cost of direct labour = ,000/9,000 = per medal. 3 batch costs ,000 + (25 * ) Alternatively, we could calculate the incremental revenue and the incremental costs of the additional 2,500 units as follows: Incremental direct manufacturing labour costs 2,500 . Total incremental operating income from accepting the special order.
