Knowledge Check $01$

Flexcore Incorporated received a special order from one of its customers to sell its product for a price less than the normal selling price. If Flexcore does have idle production capacity necessary to fill this order, which of the following costs is likely to be irrelevant to the decision?

Fixed manufacturing overhead

Direct materials

Variable manufacturing overhead

Direct labor

Knowledge Check $02$

Fruit First produces and sells baskets of dried fruit for $$20$ each. It receives a special order from Carol Costellano for $150$ baskets at a special price of $$16.$ The company incurs a variable cost of $$11$ and a fixed manufacturing overhead of $$6$ per unit of fruit basket. The company has excess capacity to fill this special order. Should the special order be accepted?

Yes

No