ACC202-Ch8-Exercise-5

ACC202-Ch8-Exercise-5 - FileName Tab Exercise E8-5 Page 1...

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Unformatted text preview: FileName: 0295177cd5135e7dba832e16da25faf0e6c04e7f.xls, Tab: Exercise E8-5, Page 1 of 2, 06/07/2009, Name: Date: Instructor: Course: Exercise E8-5 Analyzing a Special Order Direct materials $500,000 Direct labor 300,000 Variable overhead 100,000 Fixed overhead 1,200,000 Total cost $2,100,000 Required: What will be the affect on profit of accepting the order? Accepting the order will result in: Incremental revenue Amount Incremental costs: Material Amount Labor Amount Variable overhead Amount Formula Incremental profit Formula Managerial Accounting , Second Edition by James Jiambalvo Solving Managerial Accounting Problems Using Microsoft Excel for Windows Templates by Rex A Schildhouse PowerDrive, Inc. produces a hard disk drive that sells for $140 per unit. The cost of producing 20,000 drives in the prior year was: At the start of the current year, the company received an order for 2,000 drives from a computer company in China. Management of PowerDrive has mixed feelings about the order. On the one hand, they welcome the China....
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ACC202-Ch8-Exercise-5 - FileName Tab Exercise E8-5 Page 1...

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