12-14Ex_5e_s

Survey of Accounting (Available Titles Cengagenow)

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Exercise 12-14 Name: Section: Score: 0% Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. A red asterisk (*) wil appear in the row immediately to the right of an incorrect answer. a. Proposal to Sel to Euro Motors May 4, 2010 Per unit Total Differential revenue from accepting special offer Differential costs from accepting special offer: Direct materials Direct labor Variable factory overhead Variable sel ing and administrative Less: Avoided sales commission Additional shipping costs Variable special offer product cost Incremental certification costs Total differential costs Differential income from accepting special order b. Minimum price per unit = = Alternative calculation: - = Instructions

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Exercise 12-14 Name: SOLUTION Section: Score: See student sheet for student's score Scoring: ON Answers are entered in the cells with gray backgrounds.
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Unformatted text preview: Cells with non-gray backgrounds are protected and cannot be edited. A red asterisk (*) wil appear in the row immediately to the right of an incorrect answer. a. Proposal to Sel to Euro Motors May 4, 2010 Per unit Total Differential revenue from accepting special offer \$75.00 \$1,875,000 Differential costs from accepting special offer: Direct materials \$32.00 Direct labor 8.00 Variable factory overhead 15.00 Variable sel ing and administrative 7.00 Less: Avoided sales commission (4.50) Additional shipping costs 6.00 Variable special offer product cost \$63.50 \$1,587,500 Incremental certification costs 125,000 Total differential costs \$1,712,500 Differential income from accepting special order \$162,500 b. Minimum price per unit = \$1,712,500 = \$68.50 25,000 Alternative calculation: \$75 -\$162,500 = \$68.50 25,000 Instructions...
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This note was uploaded on 11/04/2011 for the course ACC 121 taught by Professor Thomas during the Winter '08 term at Baker MI.

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12-14Ex_5e_s - Cells with non-gray backgrounds are...

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