In producing 4000 additional units fixed overhead costs

Reference no: EM13596073

Termus Industries is operating at 85% of its manufacturing capacity of 50,000 product units per year. A customer has offered to buy an additional 4,000 units at $25 each and sell them outside the country so as not to compete with Termus. The following data are available:

Costs at 85% Capacity. Per Unit. Total
Direct materials $10.00 $425,000
Direct labor 8.00 340,000
Overhead (fixed and variable) 13.00 552.500
Totals $31.00 $1,317,500

In producing 4,000 additional units, fixed overhead costs would remain at their current level but incremental variable overhead costs of $4 per unit would be incurred. What is the effect on income if Termus accepts this order?

Reference no: EM13596073

Questions Cloud

The owner of flaherty accounting services wants to earn a : the owner of flaherty accounting services wants to earn a margin on tax returns of 15000 during march. if 200 returns

Prepare journal entries to record the machines disposal : saturn co. purchases a used machine for 167000 cash on january 2 and readies it for use the next day at an 3420 cost.

The formula f 12x 216 models income f in the thousands of : question the formula f 1.2x 21.6 models income f in the thousands of dollars for a family of 4 in minnesota since

Current information on mondavi and constellation brands can : current information on mondavi and constellation brands can be found in the lrc database mergent online.1. discuss the

In producing 4000 additional units fixed overhead costs : termus industries is operating at 85 of its manufacturing capacity of 50000 product units per year. a customer has

Rondell makes 10 an hour cutting grass and 12 an hour : question rondell makes 10 an hour cutting grass and 12 an hour raking leaves. he cannot work more than 15 hours per

Consider that under international financial reporting : 1. should preferred stock be recognized as a liability as a liabiity or should it be considered equity? defend your

Preparing adjusting entries prepare adjusting journal : accounting help please. preparing adjusting entries? prepare adjusting journal entries for the year ended december

Available-for-sale securities are securities that : 1 generally accepted accounting principles gaap require the use of fair value accounting for all assets and

User Account

All Pages

In producing 4000 additional units fixed overhead costs

Reference no: EM13596073

Reference no: EM13596073

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT