Gruner also incurs 7 sales commission 048 on each disc
Course:- Accounting Basics
Reference No.:- EM13601444

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

Gruner Company produces golf discs which it normally sells to retailers for $6.89 each. The cost of manufacturing 17,300 golf discs is:

  • Materials $8,996
  • Labor 24,393
  • Variable overhead 18,857
  • Fixed overhead 33,908
  • Total $86,154

Gruner also incurs 7% sales commission ($0.48) on each disc sold.Travis Corporation offers Gruner $4.82 per disc for 4,700 discs. Travis would sell the discs under its own brand name in foreign markets not yet served by Gruner. If Gruner accepts the offer, its fixed overhead will increase from $33,908 to $38,718 due to the purchase of a new imprinting machine. No sales commission will result from the special order.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
A company must decide which of two delivery services they will contract with. During a recent trial period, they shipped numerous packages with each service and have kept tr
Ensnada Mfg. Co, rpoduces candles that contain four raw materials: wax, dye, scented oil and a wick. Each candle usues eight ounces of wax and one ounce of die, which Ensina
Characterize each of the following goods and services in terms of their price elasticity of demand. In so doing, indicate whether a steeply sloped (vertical) and relatively
Prepare a cash distribution plan as of September 30, 2009, showing how much cash each partner will receive if the offer to sell the assets is accepted.
The City of Breukelen maintains a rapid transit system, which is accounted for in a proprietary fund called Breukelen RTS. The following excerpt from the trial balance shows
How are franchise fees, royalty fees, and KKM&D sales with these joint ventures reflected in the Company's consolidated financial statements? What issues might arise in anal
Based on the following data for the current year, what is the accounts receivable turnover? Net sales on account during year $500,000 Cost of merchandise sold during year 30
How much interest income will he report this year if he elects to amortize the bond premium and how much interest will he report this year if he does not elect to amortize the