User Account

All Pages

What will be the real effect on profit

Assignment Help Accounting Basics
Reference no: EM132011041

Question - Custom Metal Works received an offer from big-box retail company to purchase 3,000 metal outdoor tables for $220 each.

Custom Metal Works accountants determined that the following cost apply to the tables:

Direct Material $125

Direct labor 50

Manufacturing overhead 70

Total $245

Of the $70 of overhead, $14 is variable and $56 relates to fixed cost. The $56 of fixed overhead is allocated as $1.12 per direct labor dollar.

Question A) What will be the real effect on profit if the order is accepted?

Question B) Explain why managers who focus on reported cost per unit may be inclined to turn down the order.

Reference no: EM132011041

Questions Cloud

Design a wide area network solution : BN106 - Networking Fundamentals - Network design - Recognize network topologies, media types and network components
Generates many copies of a particular sequence : Describes the steps of how a PCR generates many copies of a particular sequence.
Examine an adverse selection problem your company is facing : Examine an adverse selection problem your company is facing and recommend how it should minimize its negative impact on transactions.
What is the net present value of the refunding : What is the net present value of the refunding? Note that cities pay no income taxes,hence taxes are not relevant.
What will be the real effect on profit : The $56 of fixed overhead is allocated as $1.12 per direct labor dollar. What will be the real effect on profit if the order is accepted
Growing global water shortage linked to our food supply : Support the argument that we are facing a growing global water shortage linked to our food supply.
Discuss the benefits and drawbacks of biofuels : Discuss the benefits and drawbacks of biofuels in comparison to solar and wind energy.
How does the legacy of greece differ from that left : How does the legacy of Greece differ from that left by the ancient cultures of Egypt and Mesopotamia? Provide specific examples.
List and define the three most important things : List and define the three most important things that can be done to improve crop sustainability; are these the same as those that will ensure sustainability?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How would the costs of the recliners affect that theater

How would the costs of the recliners and installation within a given theater affect that theater's break even point? Explain

  Moving averages and exponential smoothing

Explain why such forecasting devices as moving averages, weighted moving averages and exponential smoothing are not well suited for data series that have trends.

  Calculate the break even volume for both technologies

A firm in its plans for a new facility is considering two production technologies, A and B. Technology A involves higher variable costs techniques; technology B relies on higher fixed cost production techniques.

  In 2011 nina contributes 11 percent of her 122000 annual

in 2011 nina contributes 11 percent of her 122000 annual salary to her 401k account. she expects to earn a 8 percent

  Prepare a bank reconciliation as of october

Prepare a bank reconciliation as of October 31 from the following information: The October 31 balance shown on the bank statement is $746

  Pressler corporations activity-based costing system has

pressler corporations activity-based costing system has three activity pools-machining setting up and other. the

  Before considering the casualty items pam reports business

casualty losses- during 2010 pam incurred the following casualty lossesasset fmv before fmv after basis

  Classification as direct labor

Which of the following is not classified as direct labor? a. bottlers of beer in a brewery b. copy machine operators at a copy shop. c. wages of supervisors d. bakers in a bakery.

  What is the return on equity

Question 1: The Jamestown Group has equity of $421,000, sales of $792,000, and a profit margin of 6 percent. What is the return on equity?

  What are the respective sources of these articles

select one of the following topics to researchcoffee or caffeineeggslow-fat dietslow-carb dietsother nutrition topic

  Journal entry for accrued interest

Investment of Rs. 10,00,000 made in the year 2009 @10% . What will be Journal entry for accrued interest. Whether TDS to be deducted on accrued interest. Please show me journal entries from the year 2009. In between there is no sale of investment...

  Make the income statement and balance sheet

Prepare the general journal for Sana Consulting for the month of February 2018 and record all journal entries. Post all journal entries to ledger accounts

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