Questionsweet products produces mint syrup used by candy

Assignment Help Cost Accounting

Reference no: EM13348263

Question:

Sweet Products produces mint syrup used by candy and gum companies. Currently, the company has had excess capacity due to a foreign supplier entering its market. Sweet Products is currently bidding on a potential order from Red Sugar Candy for 5,000 cases of syrup. The evaluated cost of each case is $27.50, as follows: direct material, $10; direct labor, $5; and manufacturing overhead, $12.50. The overhead rate of $2.50 per direct labor dollar is based on evaluated annual overhead of $1,500,000 and estimated direct labor of $600,000, composed of $400,000 of variable costs and $1,100,000 of fixed costs. The largest fixed cost relates to depreciation of equipment and plant. Would Sweet Products bid on the Red Sugar Candy business at $20 per case?

Reference no: EM13348263

Questions Cloud

Question 1a outline the provisions of occupational safety : question 1a outline the provisions of occupational safety and health act 2005 with regard to substances hazardous to

Question1following two questions are related to congestion : question1.following two questions are related to congestion control in wired networks. let us assume that size of

Consider that you are preparing a seminar on : consider that you are preparing a seminar on cost-volume-profit analysis for non accountants.various potential

Questionpizza company purchased salt company common stock : questionpizza company purchased salt company common stock through open-market purchases as

Questionsweet products produces mint syrup used by candy : questionsweet products produces mint syrup used by candy and gum companies. currently the company has had excess

Question 1a according to the accident causation model the : question 1a according to the accident causation model the causes and contributing factors of industrial accidents are-

Questionrailway company a has 1000 miles of get that extend : questionrailway company a has 1000 miles of get that extend from location a to location b. railway company a adopted

Bienvenu enterprises reported cost of goods sold for 2010 : bienvenu enterprises reported cost of goods sold for 2010 of 1400000 and get earnings of 5200000 at december 31 2010.

Questiondemonstrated that the student has grasped the : questiondemonstrated that the student has grasped the accounting concepts. the paper should encompass either when

User Account

All Pages