1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mariana [72]
3 years ago
15

Humes Corporation makes a range of products. The company's predetermined overhead rate is $20 per direct labor-hour, which was c

alculated using the following budgeted data:
Variable manufacturing overhead $51,000
Fixed manufacturing overhead $289,000
Direct labor-hours 17,000
Management is considering a special order for 740 units of product J45K at $68 each. The normal selling price of product J45K is $79 and the unit product cost is determined as follows:
Direct materials $41.00
Direct labor 14.00
Manufacturing overhead applied 20.00
Unit product cost $75.00
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 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:
If the special order were accepted, what would be the impact on the company's overall profit?
Increase profit/ Decrease profit $_____.
Business
1 answer:
hichkok12 [17]3 years ago
3 0

Answer:

$7,400

Explanation:

The impact on the company's overall profit is shown below:-

<u>Particulars                Amount </u>

Sales                          $50,320  (740 × $68)

Less : Variable cost

Direct material          $30,340  (740 × $41)

Direct Labor               $10,360  (740 × $14)

Variable Manufacturing

overhead

($51,000 ÷ 17,000)        $2,220 (740 × $3)

= 3

company's overall profit $7,400

To reach the company's overall profit we simply deduct the Direct material, direct labor and variable manufacturing overhead from sales.

You might be interested in
The financial statements of Trenton Office Supply include the following​ items: 2019 2018 Cash $ 46 comma 500 $ 43 comma 000 Sho
Juli2301 [7.4K]

Answer:

1.21

Explanation:

Current Ratio = Current Asset / Current Liabilities

= (Cash + Shortminusterm Investments + Net accounts receivable + Inventory) / Current Liabilities

= ( 46500 + 34000 + 102000 + 129000) / 257000

= 1.21

7 0
2 years ago
Read 2 more answers
Inbound marketing represents a fundamental shift in the way that organizations operate because it is ______-centric.
Natasha2012 [34]
<span>Inbound marketing represents a fundamental shift in the way that organizations operate because it is marketer-centric. This is an unconventional approach of systems since the usual ones is allowing the customers to be put first or customer-centric kind of approach. This kind builds the best relationship you can offer with the customer.</span>
4 0
3 years ago
It is said that there are a number of steps in designing an effective service system which include a) Establishing procedures to
MAXImum [283]

Answer is in a file below

cutt.us/tWGpn

5 0
3 years ago
3. According to their comparative advantage, Alphaland specializes in axes and Betaville specializes in batons. Alphaland will t
Nady [450]

Answer: Option (C) is correct.

Explanation:

A country has a comparative advantage in producing a commodity if the opportunity cost of producing that good is lesser in that country as compared to the other country.

From the information given in the question, it is clear that Alphaland has a comparative advantage in axes and Betaville has a comparative advantage in batons.

Hence, Alphaland will trade axes for batons only if the price of batons is lower than the cost of producing it in Alphaland. So that there is a possibility mutually beneficial trade.

7 0
3 years ago
Madrid Company plans to issue 9% bonds with a par value of $5,300,000. The company sells $4,770,000 of the bonds at par on Janua
ASHA 777 [7]

Answer and Explanation:

The journal entry are as follows

1. Interest expense $214,650

       To Cash $214,650

(Being the first interest payment is recorded)

The computation is shown below

= $4,770,000 × 9%  × 6 months ÷ 12 months

= $214,650

For recording this we debited the interest expense as it increased the expenses while on the other hand the cash is paid which reduced the cash balance so it is credited

2. Cash $530,000

      To Bond payable $530,000

(Being the cash sale of bond is recorded)

For recording this we debited the cash as cash is received that increased the cash balance and at the same time we credited the bond payable

5 0
3 years ago
Other questions:
  • Hewitt Company expects cash sales for July of​ $11,000, and a​ 19% monthly increase during August and September. Credit sales of
    10·1 answer
  • An insurance policy with a higher premium most likely has ...
    8·2 answers
  • Ford Motor Company is introducing consumers to its new car with the help of an advertisement campaign. This introductory campaig
    5·1 answer
  • Informative advertising :
    15·2 answers
  • A circus’ goal of redesigning the circus experience is being completed through the coordination of many marketing activities, su
    11·2 answers
  • An auditor wants to verify that for a given inventory acquisition, (1) the merchandise was ordered by the company, (2) the merch
    13·1 answer
  • Which of the following is a distance-based method for location alternatives evaluation?Factor rating methodDecision treeBreak-ev
    9·2 answers
  • On the one hand, a gerund is a verb that acts as a noun, know for the -ing form. On the other hand, an infinitive is the basic f
    9·1 answer
  • Ruth is taking ASVAB exam. Match each question with the correct section.
    15·2 answers
  • Electronic communication:_____.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!