Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Handley Metal Works received an offer from a big-box retail company to purchase 3,000 metal outdoor tables for $216 each

Handley Metal Works received an offer from a big-box retail company to purchase 3,000 metal outdoor tables for $216 each

Accounting

Handley Metal Works received an offer from a big-box retail company to purchase 3,000 metal outdoor tables for $216 each. Handley Metal Works accountants determine that the following costs apply to the tables:

 

Direct material$130Direct labor50Manufacturing overhead70Total$250

 

Of the $70 of overhead, $14 is variable and $56 relates to fixed costs. The $56 of fixed overhead is allocated as $1.10 per direct labor dollar.

 

(a) What will be the real effect on profit if the order is accepted?

 

The profit will increase or decrease

 by= $. enter a dollar amount

Option 1

Low Cost Option
Download this past answer in few clicks

2.94 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE

rated 5 stars

Purchased 8 times

Completion Status 100%

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.8)

Google (5.0)