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Special order pricing - Shorewood Shoes Company makes and sells a variety of leather shoes for children. For its current mix of different models and seizes, the average selling price and costs per pair of shoes are as follows:Item AmountPrice $20Costs:Direct materials $6Direct labor $4Variable manufacturing overhead $2Variable selling costs $1Fixed overhead $3Total Costs $16Shoes are manufacture in batch sizes of 100 pairs. Each bath required 5 machine hours to manufacture. The plant has a total capacity of 4,000 machine hours per month, but current monthly production consumes only about 80% of the capacity.A discount store has approached Shorewood to buy 10,000 pairs of shoes next month. It has requested that the shoes bear its own private label. Embossing the private label will cost Shorewood an additional $0.50 per pair. However, no variable selling costs will be incurred for fulfilling this special order.Determine the minimum (floor) price that Shorewood Shoes should charge for this order. What other considerations are relevant in this decision?
Vintage Auto Company manufactures parts to order for antique cars. Vintage Auto makes everything from fenders to engine blocks. Each customer order is treated as a job. Vintage Aut
Small Steps sells step stools. Their budget information is shown below. selling price: $40 per stool Variable expense:$30 per stool Fixed Expense:$24,000 use the above inform
cost accounting concept
From the following data write the standard cost card for one unit of the sole product manufactured. Standard Cost card for One U
1. Single product or single mix of products 2. Variable cost, fixed cost and selling price are constant 3. The level of production will equal the level of sales Example:
Question PART A A company manufactures a single product and the data concerning the product is as follows: - Sales price of $10 - Marginal cost of $6. - Fixed
what is cost center?
We have earlier explained working capital by total current assets less current liabilities. It, in other words, implies that all the assets held through the business along with the
McDaniel Company manufactures 100-pound bags of fertilizer that have the following unit standard costs for direct materials and direct labor: Direct Materials (100 lbs. @ $1.00
A company is evaluating the following lease or buy option. A four year lease with annual payments of $25,000 payable at the beginning of the year.The tax shield is available at
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