Skilled labour at a manufacturing plant is in short supply, and all available skilled labour time...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Skilled labour at a manufacturing plant is in short supply, and all available skilled labour time is fully utilised. A customer has asked for a special job that will cost $400 in direct materials and will require 15 hours of skilled labour time. Skilled labour costs $8 per hour and variable production overhead is $2 per hour. Fixed production overheads are absorbed at a rate of $20 per skilled labour hour. If the job is undertaken the skilled labour will be withdrawn from work on making items that earn a contribution of $25 per skilled labour hour. What is the minimum price that should be charged if this special job is undertaken? O $775 O $895 $925 $1,225 O Skilled labour at a manufacturing plant is in short supply, and all available skilled labour time is fully utilised. A customer has asked for a special job that will cost $400 in direct materials and will require 15 hours of skilled labour time. Skilled labour costs $8 per hour and variable production overhead is $2 per hour. Fixed production overheads are absorbed at a rate of $20 per skilled labour hour. If the job is undertaken the skilled labour will be withdrawn from work on making items that earn a contribution of $25 per skilled labour hour. What is the minimum price that should be charged if this special job is undertaken? O $775 O $895 $925 $1,225 O
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below To calculate the minimum price that sho... View the full answer
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
Posted Date:
Students also viewed these accounting questions
-
As an investment, a property is purchased at price of $1,100,000 with acquisition costs of $18,500, and 80% of the total cost is depreciable. The property is expected to appreciate in value at 10%...
-
a) The paper to be used is currently in inventory at a value of 3,500. It is of an unusual colour that has not been used for some time. The replacement price of the paper is currently 5,000, whilst...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Give a recursive algorithm for finding the reversal of a bit string. (See the definition of the reversal of a bit string in the preamble of Exercise 34 in Section 5.3.)
-
Can you find examples of where any of the contingency theories of leadership can be confirmed or disconfirmed in the Zappo's setting? Explain your answer.
-
____________ occurs when some, but not all, of the information is passed on to the supervisor.
-
1. ETHICS Lee McNeely told Hardee's officials that he was interested in purchasing multiple restaurants in Arkansas. A Hardee's officer assured him that any of the company-owned stores in Arkansas...
-
High Sky, Inc., a hot-air balloon manufacturing firm, currently has the following simplified balance sheet: The company is planning an expansion that is expected to cost $600,000. The expansion can...
-
Compensating balances and effective annual rates. Lincoln Industries has a line of credit at Bank Two that requires it to pay 11% interest on its borrowing and to maintain a compensating balance...
-
Based on the latest results from Air Canada and the Royal Bank of Canada, calculate and comment on the Degree of Operating Leverage (DOL), Degree of Financial Leverage (DFL), and Degree of Combined...
-
11) On January 1, 20X9, Amanda Mackenzie purchased a $24,000 car, making a $4,000 down payment, and borrowing the rest on a 4-year note at 8% interest. She agrees to make annual payments of...
-
riding his bicycle uphill in Ty is Fdmonton's river valley, the gains of elevation over the of trail in 8.0 minutos. Ty have a combined mass of gokg How much work did Ty do to make the climb7 65...
-
Sketch both of these graphs by using the Following data: Graph #1 f(2)= undefined f(-3) = 3 lim f(x) = 1 x-27 lim f(x) = 5 Graph #2 lim f(x) = 1 x -00 lim f(x) = -4 x+00 lim_ f(x) = 3 x-4 lim f(x) =...
-
Four months after the merger between two auto insurance companies, Green Lizard and Global Promise, Priya Shama was hired to oversee the merger of the claims department for both companies. The newly...
-
Explain the purpose and state on which financial statement the following belong and provide a short example of each: Research and Development, Accumulated Amortization, Amortization Expense.
-
Find the general solution of the following differential equation. Primes denote derivatives with respect to x. 1 (xy' + y) (8+x) = 6x The general solution is y(x) = .
-
Consider a two - period binomial model in which a stock currently trades at a price of K 6 5 . The stock price can go up 2 0 percent or down 1 7 percent each period. The risk - free rate is 5...
-
If your school has a subscription to the FASB Codification, go to aaahq.org/ ascLogin.cfm to log in and prepare responses to the following. (a) What is the stock dividend? (b) What is a stock split?...
-
1. Allocate the costs of the service departments using the step-down method. 2. Using the results of number 1, compute the cost per direct-labourhour in the Mechanical Instruments department and the...
-
Shepton Specialty Products Ltd. is a manufacturer of surgical instruments. Given the changes in surgical technology, Shepton has had to invest heavily in maintaining and upgrading its...
-
G. Esteban, the president of a Toronto trucking company, is considering whether to invest $410,000 in new semi-automatic loading equipment that will last five years, have zero scrap value, and...
-
Laws and penalties for driving under the infl uence (DUI) are extremely strict in many states. Furthermore, the number of motor vehicle accidents involving young drivers has increased and become more...
-
Actuaries determine the costs and risks involved with insuring peoples property. Actuaries are experts in evaluating the like lihood of future events. They design creative ways to reduce the...
-
Comparative financial statements for the Rahul Corporation for the year ended December 31 are given below. A total of 500,000 shares of stock were outstanding. The market value of the company's stock...
Study smarter with the SolutionInn App