Solution-What will be real effect on profit if the order is

What will be real effect on profit if the order is accepted

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Reference no: EM133035651

Question - Kennel Metal Works received an offer from a big-box retail company to purchase 3,240 metal outdoor tables for $232 each. Kennel Metal Works accountants determine that the following costs apply to the tables:

Direct material $142

Direct labor 54

Manufacturing overhead 76

Total $272

Of the $76 of overhead, $15 is variable and $61 relates to fixed costs. The $61 of fixed overhead is allocated as $1.18 per direct labor dollar.

Required - What will be the real effect on profit if the order is accepted?

Reference no: EM133035651

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What will be real effect on profit if the order is accepted : Of the $76 of overhead, $15 is variable and $61 relates to fixed costs. What will be the real effect on profit if the order is accepted

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What will be real effect on profit if the order is accepted

Reference no: EM133035651

Reference no: EM133035651

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