What would be the impact on the companys overall profit

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Reference no: EM13599083

Humes Corporation makes a range of products. The company's predetermined overhead rate is $17 per direct labor-hour, which was calculated using the following budgeted data:

Variable manufacturing overhead $ 75,000
Fixed manufacturing overhead $ 180,000
Direct labor-hours 15,000 hrs

Management is considering a special order for 590 units of product J45K at $53 each. The normal selling price of product J45K is $64 and the unit product cost is determined as follows:

Direct materials $ 26.00
Direct labor $ 17.00
Manufacturing overhead applied $ 17.00
Unit product cost $ 60.00

If the special order were accepted, normal sales of this and other products would not be affected. The company has ample excess capacity to produce the additional units. Assume that direct labor is a variable cost, variable manufacturing overhead is really driven by direct labor-hours, and total fixed manufacturing overhead would not be affected by the special order.

Required:
What would be the impact on the company's overall profit? (Input the amount as a positive value. Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.)

Reference no: EM13599083

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