What will be real effect on profit if order is accepted

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Reference no: EM131205111

Custom Metal Works received an offer from a big-box retail company to purchase 2,800 metal outdoor tables for $220 each. Custom Metal Works accountants determine that the following costs apply to the tables: Direct material $120 Direct labor 60 Manufacturing overhead 80 Total $260 Of the $80 of overhead, $14 is variable and $66 relates to fixed costs. The $66 of fixed overhead is allocated as $1.10 per direct labor dollar. What will be the real effect on profit if the order is accepted?

Reference no: EM131205111

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What will be real effect on profit if order is accepted : Custom Metal Works received an offer from a big-box retail company to purchase 2,800 metal outdoor tables for $220 each. Custom Metal Works accountants determine that the following costs apply to the tables: The $66 of fixed overhead is allocated as ..

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