What is the cost of the special order

Assignment Help Accounting Basics
Reference no: EM132544668

Question - Franklin Company uses activity-based costing, and normally produces 1,000,000 units per month. At this level of production, the costs per unit are as follows:

Direct materials used $14

Direct labor $6

Variable indirect production $1

Setup costs $3

For 1,000,000 units, 500 setups are required at a cost of $6,000 per setup. The company has received a special order for 100,000 units at $22 per unit. The company has excess capacity. The company estimates that 5 setups will be required for the special order. What is the cost of the special order?

Reference no: EM132544668

Questions Cloud

Explain how diversity of workforce and characteristics : Explain how "diversity of workforce and their characteristics" are new challenges and opportunity for the managers of today?
What was the beginning balance in unearned revenue : The firm reported $225,500 in Revenue and $43,700 in Unearned Revenue. What was the beginning balance in Unearned Revenue at January 1, 2018
What would be Bob basis in the warehouse : What would be Bob's basis in the warehouse and in the land if the appraised value of the warehouse was $50,750
Discuss the notion of accountability : Discuss the purpose of exercising management control in organisations. Discuss the notion of accountability. Explain with suitable example.
What is the cost of the special order : The company has excess capacity. The company estimates that 5 setups will be required for the special order. What is the cost of the special order
What is the accumulated depreciation balance : The company's fiscal year end is June 30. What is the accumulated depreciation balance in Hanif Haulers' accounting records at its 20X8 fiscal year end
What are the major competitors to firm : What are the major competitors to your firm? (Find at least 3 that are closest in total revenue size to your company, then list their names)
Analyze various approaches to managing diversity : Analyze various approaches to managing diversity in the workplace, evaluating the advantages and challenges of each.
How well does selected company compare to industry peer : How well does your selected company compare to its industry peer? Which components of your firm's ROE are superior, and which are inferior?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd