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Provide detailed explanation for all relevant costs

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Delivery costs

No special packing is required but the transport costs related to the urgent-order will be: Salary of existing driver: $500/week, Fuel charges: $475/order, Packer's over-time allowances: $200/week and Servicing charges: $1,000/order. General Production costs The general fixed production overhead is absorbed on a labor hour basis and the production overhead absorption rate is established at $21.00 per skilled labor hour. The general fixed production overhead costs actually incurred and paid for as a result of the special-order are expected to increase by $300 per week.

Question 1: Prepare calculations and provide detailed explanation for all relevant costs and irrelevant costs related to the urgent-order of Coved Ltd.

Reference no: EM132566864

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