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Question - Avery textile company manufactured high quality bed sheets and sells them in sets to a well known retail company for $80 a set. Avery has sufficient capacity to produce 150,000 sets of sheets annually; the retail company currently purchases 100,000 sets each year. Averys unit level cost is $45 per set and its fixed cost is $1,050,000 per year. A motel chain has offered to purchase 15,000 sheet sets from avery for $56.25 per set. If avery accepts the order, the contract will prohibit the motel chain from reselling the bed sheets.
Required - Should Avery accept or reject the special order? Support your answer with appropriate computations.
Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.
Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.
Prepare a master budget for the three-month period.
Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.
Evaluate the Predetermined Overhead Rate
Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.
Complete the schedule to compute the pool rates for the different activities.
Prepare Company financial statements
This individual assignment is based on the TerraCycle Inc.
Discuss the ethical issues
Calculate the GDP in Income Approach and Expenditure Approach
A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
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