TAKE MY CLASS

ACCT 434 Week 3 DQ 2 (Updated)

$5.00

11-29) 10,000 Batts @ $23 each	Cost per Bat	Calculation	Total Costs
Direct materials	$13	$13x 10,000	$130,000.00
Direct manufacturing labor	5	$5x 10,000	$50,000.00
Variable manufacturing overhead	2	$2 x 10,000	$20,000.00
Fixed manufacturing overhead	6	$6x 10,000	$60,000.00
Variable selling expenses	3	$3x 10,000	$30,000.00
Fixed selling expenses	2	$2x 10,000	$20,000.00
Total costs	$31		$310,000.00


		1) Suppose Slugger is currently producing and selling 40,000 bats. At this level of production and sales, its fixed costs are the same as given in the preceding table. Bench Corporation wants to place a one-time special order for 10,000 bats at $23 each. Slugger will incur no variable selling costs for this special order. Should Slugger accept this one-time special order? Show your calculations.