Question: Ries Corporation has received a request for a special order of 8,200 units of product R34 for $34.60 each. The normal selling price of this
Ries Corporation has received a request for a special order of 8,200 units of product R34 for $34.60 each. The normal selling price of this product is $36.20 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product R34 is computed as follows: Direct materials $10.60 Direct labor 1.60 Variable manufacturing overhead 6.90 Fixed manufacturing overhead 2.90 Unit product cost 22.00 Direct labor is a variable cost. The special order would have no effect on the company
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