Question

Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $37.10 and sold for $65.45. A finished desk can be sold for $75.00. The additional processing cost to complete the finished desk is $6.30.Prepare a differential analysis. Round your answers to two decimal places.

Answer 1

Answer:

Find below analysis

Explanation:

Based on the appropriate template, I have prepared the differential analysis as shown in the attached excel file bearing in mind the following points:

The costs per desk under the alternative is the cost of an unfinished desk which is $37.10 plus the cost of further processing for a finished desk which is $6.30

Also, the different effect is simply the amount for alternative 2 minus amount under alternative 1

Download xlsx