What will be real effect on profit for covington metal work

Assignment Help Managerial Accounting
Reference no: EM132960178

Covington Metal Works received an offer from a big-box retail company to purchase 3,840 metal outdoor tables for $272 each. Covington Metal Works accountants determine that the following costs apply to the tables:

Direct material $172
Direct labor 64
Manufacturing overhead 90
Total $326

Of the $90 of overhead, $18 is variable and $72 relates to fixed costs. The $72 of fixed overhead is allocated as $1.38 per direct labor dollar.

Problem (a) What will be the real effect on profit if the order is accepted?

Reference no: EM132960178

Questions Cloud

What are changes done to cope with pandemic situation : Pick any local Malaysian company, explain the pre-pandemic training, learning, and development practice of the chosen company. Discuss how the company is dealin
Find and solve the copy department costs allocated to sales : Solve the copy department costs allocated to sales and administration. The PearlCityCompany's copy department, which does almost all of the photocopying
Write an annotation for a quantitative : Write an annotation for a quantitative, peer-reviewed journal research article on chronic absenteeism
Define coupon and market-effective interest rates : Question - Define coupon and market/effective interest rates as they determine bond pricing at par, premium, or discount values
What will be real effect on profit for covington metal work : What will be the real effect on profit if the order is accepted? Of the $90 of overhead, $18 is variable and $72 relates to fixed costs.
Write professional email response to your boss : Your boss asks you to respond to the following issue he is working on: Our supplier is not responding to our current for increased supply of our widgets. He has
What is the relevant ear in this part of the question : The first payment for the perpetuity will be received by Karin at the end of year 5. What is the relevant EAR in this part of the question
Explain what role does company play in encouraging actions : Suppose that you are the marketing manager for the division, and you receive instructions to defer the closing of sales until next fiscal year. What would do?
Explain the advocacy role : Explain how you as a medical social worker would handle the case selected below.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Determine what is the length of the cash conversion cycle

Accounts payable is 40 days, and the average age of inventory is 69 days. Assuming a 365-day year, what is the length of its cash conversion cycle?

  Prepare the company planning budget for june

Prepare the company's planning budget for June. For example, utilities should be $1,300 per month plus $0.25 per machine-hour.

  Assign the cost of labor to each of the three activities

Assign the cost of labor to each of the three activities in the accounts payable department. Round your answers to the nearest dollar.

  What and how much are the variable costs

What and how much are variable costs? Present each item in cost per cupcake basis. What and how much are fixed costs? Present each item in total cost per year.

  Which decision to produce additional units of product

Which decision to produce additional units of product? A factory is operating at less than 100% capacity. Potential additional business

  Analyze the potential management target

Analyze the potential management target. Define the NPV, IRR, PBP, and ARR processes, as well as their decision rules, and test them

  Perhaps your most important post graduation objective

Perhaps your most important post-graduation objective is to get a job. Describe some control activities that you would pursue to help achieve this objective.

  Overhead variance by adjusting the costs of goods sold

Calculate the overhead variance for the year and dispose of the overhead variance by adjusting the costs of goods sold.

  What would be the maximum purchase price happy pet

What would be the maximum purchase price Happy Pet would be willing to pay for the bottles? Why? Should Happy Pet Co. make or buy the bottles

  Read using shareholder value to evaluate strategic choices

read using shareholder value to evaluate strategic choices by nick fera management accounting november 1997. the

  What the materials price variance for january is

What the materials price variance for January is? Gipple Corporation makes a product that uses a material with the quantity standard of 8.1 grams per unit

  What would do as the government official

Suppose US manufacturers, is considering entering, What would you do as the Government Official if you were make a decision for US Manufactures?

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