What is the operating income generated by the special order

Assignment Help Managerial Accounting
Reference no: EM133097469

Question - Sheridan Forge manufactures saddles for show horses. The company has received a special order for 380 saddles for an international competition. Each of these saddles would include the specialized logo of the competition. Last year Sheridan produced 800 saddles, and the company has the capacity to produce 1180 saddles per year. Sheridan's saddles normally sell for $740 each, but the special offer is for $269800 ($710 per saddle). The controller has provided information to management that estimates the variable cost per saddle is $450; fixed manufacturing overhead is $75/saddle. Of the fixed costs assigned to this special order, $16300 is for the specialized logos, the remainder is attributable to costs that will be incurred regardless of whether the special order is produced. What is the operating income generated by the special order?

a. $54000

b. $82500

c. $98800

d. $70300

Reference no: EM133097469

Questions Cloud

Determine the book value of the division assets : Ziltech reported net income for the year of $6.6 million. Determine the book value of the division's assets on December 31, 2021
How do computer-assisted procedures impact this audit : How do computer-assisted procedures impact this audit? How might this enable the auditor to better understand the business and its environment
Calculate the correct amounts for current assets : Calculate the correct amounts for current assets, current liabilities, sales, cost of goods sold, and total operating expenses
What is Blossom Creations direct materials quantity variance : The standard price of the copper tubing is $2.70 per foot. What is Blossom Creations' direct materials quantity variance for the period
What is the operating income generated by the special order : The company has received a special order for 380 saddles for an international competition. What is the operating income generated by the special order
Explain the eligibility of the Medicare program : Explain the eligibility of the Medicare program; who can be covered? What must be followed to receive reimbursement funds
What is the division ROI : Blossom Corporation's Cajun Spice division has a segment margin is $434800 for the current reporting period. What is the division ROI
Base pay discrimination in the walt disney company : Gender- Base pay discrimination in the Walt Disney company what Suggestions can a hired human resource can suggest to a company based on pay discrimination
Develop a website about yourself using html5 : For this assignment, you need to design and develop a website about yourself using HTML5. The content to present on your website could include your personal int

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!

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