Kava inc manufactures industrial components one of its

Assignment Help Accounting Basics
Reference no: EM13569828

Kava Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as K65. Data concerning this product are given below: The above per unit data are based on annual production of 4,000 units of the component. Direct labor can be considered to be a variable cost. (Source: CMA, adapted) The company has received a special, one-time-only order for 500 units of component K65.

There would be no variable selling expense on this special order, and the total fixed manufacturing overhead and fixed selling and administrative expenses of the company wouldn't be affected by the order. Assuming that Kava has excess capacity and can fill the order without cutting back on the production of any product, what is the minimum price per unit on the special order below which the company shouldn't go? Per Unit Selling price $180 Direct materials $29 Direct labor $5 Variable manufacturing overhead $4 Fixed manufacturing overhead $21 Variable selling expense $2 Fixed selling and administrative expense $17?

Reference no: EM13569828

Questions Cloud

Write a memo to the company controller describing the : write a memo to the company controller describing the differences between the percentage of completion method and the
The authority vested in the board of directors is assigned : the authority vested in the board of directors is assigned to.coo ceo senior vice president for legal compliance all of
Flip earns a salary of 7500 per month during the year fica : flip earns a salary of 7500 per month during the year. fica taxes are 8 on the first 100000 of gross earnings. federal
Flip company purchased equipment on january 1 2011 for : flip company purchased equipment on january 1 2011 for 90000. it is estimated that the equipment will have a 5000
Kava inc manufactures industrial components one of its : kava inc. manufactures industrial components. one of its products which is used in the construction of industrial air
Munn bicycle company manufactures bicycles specifically for : munn bicycle company manufactures bicycles specifically for college campuses. the bicycles sell for 100 and are very
At the beginning of the year lambert motors issued the : at the beginning of the year lambert motors issued the three notes described below. interest is paid at year end. 1 the
A state or local government may employ only one of the : a state or local government may employ only one of the certain fund or nonfund accounting entities but one none or many
Most of the differences between commercial accounting and : most of the differences between commercial accounting and accounting for gampnp organizations result from differences

Reviews

Write a Review

Accounting Basics Questions & Answers

  Corporation involved in agricultural production

Corporation involved in agricultural production

  Write 5 pages essay on ifrs and gaap convergence in

write 5 pages essay on ifrs and gaap convergence in which1.describe what accounting convergence means and assess the

  Expenses to the apartment building

Eric lives in a home with a six-plex located at the rear of the property. On his tax returns, he allocates 60% of all expenses to the apartment building.

  Predetermined overhead rate for the specific year

At the end of the year, actual direct labor-hours for the year were 17,400 hours, manufacturing overhead for the year was overapplied by $13,850, and the actualmanufacturing overhead was $294,130. The predetermined overhead rate for the year must ..

  Use an excel spreadsheet and the fv pv pmt functions to

use an excel spreadsheet and the fv pv pmt functions to determine the amount of each of the following rthe annual

  Impact of risk on wacc

The Nunnally Company has equal amounts of low-risk, and high-risk projects. Nunnally estimates that is overall WACC is 12%. The CFO believes that this is the correct WACC for the company's average-risk projects

  Cost of carbonated beverages

How would the concepts of utility, income, and substitution impact your purchases based on the rise in the cost of carbonated beverages?

  Assess the adequacy of the schedule m-3 part 1 in creating

corporations p s and c are members of a parent-subsidiary controlled group filing a consolidated tax return.

  If carter can purchase the component externally for 220000

1. budgeted overhead for haft inc. at normal capacity of 30000 direct labor hours is 3 per hour variable and 2 per hour

  Penalty dispute with the epa

In May of 2009, Raymond Financial Services became involved in a penalty dispute with the EPA. At December 31, 2009, the environmental attorney for Raymond indicated that an unfavorable outcome to the dispute was probable.

  Determining amount of the dividend

The Polk stock was purchased for $5 per share. Market value was $10 per share on the declaration date and $11 per share on the distribution date. What is the amount of the dividend?

  Determine operating income for 20x7

Determine operating income for 20X7, assuming the firm uses the variable-costing approach to product costing. (Do not prepare a statement.)

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd