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ruskin ruskin
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6 years ago
Schlickau Company manufactures basketball backboards. The following information pertains to the
company's normal operations per month:

   Output units   15,000 boards
   Machine-hours   4,000 hours
   Direct manufacturing labour-hours   5,000 hours

   Direct manufacturing labour per hour   $12
   Direct materials per unit   $100
   Variable manufacturing overhead costs   $150,000
   Fixed manufacturing overhead costs    $300,000
   Product and process design costs   $200,000
   Marketing and distribution costs   $250,000

Required:
a.   For long-run pricing, what is the full-cost base per unit?
b.   Schlickau Company is approached by an overseas city to fulfill a one-time-only special order for 1,000 units. All cost relationships remain the same except for an additional one-time setup charge of $40,000. No additional design, marketing, or distribution costs will be incurred. What is the minimum acceptable bid per unit on this one-time-only special order?
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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btpsandbtpsand
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