User Account

All Pages

Should technology inc ltd accept the order

Assignment Help Managerial Accounting
Reference no: EM133015611

Question - Technology Inc. Ltd sells desktop computer printers for $65 per unit. Unit product costs are:

Direct materials $12

Direct labor 20

Manufacturing overhead 6

Total $38

A special order to purchase 10,000 desktop computer printers has recently been received from another company, and Technology Inc. has the idle capacity to fill the order. The company will incur an additional $1.50 per printer for additional labor costs due to a slight modification the buyer wants to be made to the original product. One-third of the manufacturing overhead costs are fixed and will be incurred no matter how many units are produced. $2,100 of existing fixed administrative costs will be allocated to the order as "part of the cost of doing business".

Required -

a) Which of the data above should be ignored in making the special-order decision? For what reason?

b) Should Technology Inc. Ltd accept the order if the buyer offers $38 per unit for 10,000 desktop computer printers?

c) What factors must any company consider before accepting a special-order contract?

Reference no: EM133015611

Questions Cloud

What is bad boys inc cost of capital : If Bad Boys, Inc. raises capital using 30% debt, 5% preferred stock, and 65% common stock, what is Bad Boys, Inc.'s cost of capital
Prepare income statement for your business for month ending : The cost of wool and needles for the kits was $10 each. Prepare Income Statement for your business for the month ending 31 May 2021
What is the cost of drawing up the contract : Total overhead costs of rent and utilities is expected to total $144,000 for the year. What is the cost of drawing up the contract
What is the amount of sales for the year : Ending inventory is twice as much as the beginning. The income after tax of 30% for the current year is P2,100,000. What is the amount of sales for the year
Should technology inc ltd accept the order : Should Technology Inc. Ltd accept the order if the buyer offers $38 per unit for 10,000 desktop computer printers
Construct an ito for caldertech : Construct an ITO for CALDERTECH and Map the process for order fulfilment (including manufacture) of electrofusion boxes at CALDERTECH
Determine how events or transactions should be disclosed : Determine how and whether each of the above three events or transactions ((a) ~ (c)) should be disclosed in the financial statements or accompanying notes
Provide the journal entries necessary to account : An amount of $3.50 per share was received. The costs of conducting the resale amounted to $10,000. Provide the journal entries necessary to account
Explain the reasons why we need to establish regulations : Explain the reasons why we need to establish regulations in the financial reporting area from the pro-regulation perspective

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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