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Build_a_Spreadsheet_15_38 - Totals for Per Unit 120000...

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DATA INPUT Direct material $5 Sales Commission 5% Direct labor $6 Freight Expense $1 Manufacturing Overhead $9 Markup 40% Total Product Cost $20 Selling Price $27 Manufacturing overhead is applied per standard direct-labor hour at the following rate:Add'l Fixed Overhead $12,000 (per month) Variable manufacturing overhead $6 Fixed manufacturing overhead (traceable) $8 Glasgow Order Fixed manufacturing overhead (allocated) $4 Total Units 120,000 Applied Manufacturing Overhead 18 Per Month 30,000 Glasgow Price $19 SOLUTION 2. The analysis of accepting the Glasgow Industries order of 120,000 units is as follows:
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Unformatted text preview: Totals for Per Unit 120000 units Incremental Revenue $19 $2,280,000 Incremental Costs: Variable Costs: Direct Material $5 $600,000 Direct Labor $6 $720,000 Variable Overhead $3 $360,000 Total Variable Costs $14 $1,680,000 Fixed Overhead: Supervisory and clerical cost(4 months @ $12000) $48,000 - Total Incremental Costs $1,728,000 Total Incremental Profits $552,000 3. Direct Material $5.00 Direct Labor $6.00 Variable Overhead $3.00 $14.00 Additional Fixed Cost ($48000/120000) $0.40 Minimum Unit Price $14.40...
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