ACCT 434 Week 3 DQ 2 (Updated)

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ACCT 434 Week 3 DQ 2 (Updated)


11-29) 10,000 Batts @ $23 eachCost per BatCalculationTotal Costs
Direct materials$13$13x 10,000$130,000.00
Direct manufacturing labor5$5x 10,000$50,000.00
Variable manufacturing overhead2$2 x 10,000$20,000.00
Fixed manufacturing overhead6$6x 10,000$60,000.00
Variable selling expenses3$3x 10,000$30,000.00
Fixed selling expenses  2$2x 10,000$20,000.00
Total costs$31$310,000.00

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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.

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