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Anderson Manufacturing makes a single product. Budget information regarding the current pe

Anderson Manufacturing makes a single product. Budget information regarding the current pe

Anderson Manufacturing makes a single product.  Budget information regarding the current period is given below:

 

  

Revenue (100,000 units at $8.00)

$800,000

 

Direct materials

150,000

 

Direct labor

125,000

 

Variable manufacturing overhead

235,000

 

Fixed manufacturing overhead

110,000

 

Net income

$180,000

 

Dye Company approaches Anderson with a special order for 15,000 units at a price of $7.50 per unit. Variable costs will be the same as the current production and accepting the special order will not have any impact on the rest of the company's orders.  However, Anderson is operating at capacity and will incur an additional $50,000 in fixed manufacturing overhead if the order is accepted.

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Rosa Parks 06-Nov-2017

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