Reference no: EM132631874

Problem 1: Wood Co. has considerable excess manufacturing capacity. A special job order's cost sheet includes the following applied manufacturing overhead costs:

Fixed costs: 25,000
Variable costs: 36,000

The fixed costs include a normal $4,500 allocation for in-house design costs, although no in-house design will be done. Instead, the job will require the use of external designers costing $9,250. What is the total amount to be included in the calculation to determine the minimum acceptable price for the job?

Option 1: $40,500

Option 2: $45,250

Option 3: $61,000

Option 4: $65,750

Problem 2: How does managerial and financial accounting differ in terms of the amount of detail presented and nonmonetary and monetary information?