Criss Cross, Inc. produces flair pens that they sell for $7 each. Disney has offered Criss Cross, Inc. $4 per pen for a one-time order of 20,000 pens with a Mickey Mouse sticker on them. Disney would provide the stickers. Criss Cross has provided the following data for the year: Regular Selling Price $7 Variable Costs: Manufacturing $3.80 Selling & Administrative $1 Fixed Costs: Manufacturing $400,000 Selling & Administrative $100,000 There would be no variable selling and administrative expenses associated with this special offer. Fixed costs would not be affected. Assume that Criss Cross, Inc. has excess capacity and that the special pricing order would not adversely affect regular sales. Criss Cross should Group of answer choices accept the order as relevant income would increase by $4,000 reject the order as relevant income would decrease by $4,000 accept the order as relevant income would increase by $44,000 accept the order as relevant income would increase by $16,000 reject the order as relevant income would decrease by $16,000 reject the order as relevant income would decrease by $496,000 reject the order as relevant income would decrease by $60,000. How do you account for labor costs in a manufacturing company?  What are the implications of variances in the manufacturing process, and how are they accounted for?

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To account for labor costs in a manufacturing company you typically include them as part of the manufacturing overhead or direct labor costs depending ... View the full answer