Question: QUESTION 20 Fuller company makes frames. A customer wants to place a special order for 600 frames in green with the company logo painted on
QUESTION 20 Fuller company makes frames. A customer wants to place a special order for 600 frames in green with the company logo painted on the frames, to be priced at $40 each. Normally, Fuller would charge $90 per frame for this type of order. Fuller figures that wood and glass will cost $16 per frame, variable overhead (machine, electricity is 54 per frame, direct laboris 512 per frame and one setup will be required at $1,000 per setup. The setup charge costs are 100% Labor. Currently the workers needed to setup for and make the frames are working at Fuller.Their wages would be paid whether or not their special order is accepted. Fuller's policy is to avoid layoffs to the extent possible. Which of the following is irrelevant to the special order decision? a) cost of wood and glass b) direct labor cost c) machining and electricity d) $40 e) all of these are relevant aa Obb OOOO
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