The normal selling price of Carla Company's product is $3.00 per unit. The costs of production are: direct materials, $0.20; direct labor, $0.10; variable overhead, $0.40; and fixed overhead, $0.60 (based on normal capacity). The company has received a special order for 8,000 units at a unit sales price of $1.00. There is ample unused capacity to fill the order. If the order is accepted,
operating income will
A) increase by $2,400.
B) decrease by $2,400.
C) increase by $3,600.
D) increase by $8,000.
A
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A. vertical competition agreements B. cross-licensing agreements C. multiple licensing agreements D. horizontal competition agreements
Bag Ladies, Inc manufactures two kinds of bags—totes and satchels
The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $25,500. Additional estimated information is given below. Totes Satchels Direct materials cost per unit $34 $40 Direct labor cost per unit $54 $64 Number of units 530 390 Calculate the amount of overhead to be allocated to Totes. (Round any percentages to two decimal places and your final answer to the nearest dollar.) A) $472 B) $347 C) $11,878 D) $13,620
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Monthly remittance of sales tax due has no impact on the income statement, but reduces cash flow from operating activities.
Answer the following statement true (T) or false (F)