Unformatted text preview: 30,000 Total 270,000 ¹150000*$8 ²150000*$3 ³150000*$1 150000*$2 ⁴ 3 months*$10000 ⁵ Accepting the order provides the greatest benefit by $270,000 Relevent costs of making the crowns in-house include, direct materials, direct labor, variable overhead, rent, and supervisor's salary. Direct Labor² Variable Overhead³ Purchase Cost ⁴ Relevent costs & benefits of accepting the order include, the sale price of $8,direct materials, direct labor, variable overhead, and the cost of renting the labeling machine. Our operating income would increase by $270,000 Labeling Maching ⁵...
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- Spring '07
- Managerial Accounting, Supervisor salary, Alternatives Differential Cost, relevent costs