Wehrs Corporation hasreceived a request for a special order of 6,000 units of produc k19for $32.30 each. The normal selling price of this product is $33.45each, but the units would need to be modified slightly for thecustomer. The normal unit product cost of product K19 is computedas follows. Directmaterial…………………………………..$15.00
Directlabor…………………………………………3.80
variable manufacturing overhead………1.40
Fixed manufacturing overhead…………2.10
unit product cost………………………………….22.30
Direct labor is a variable cost. The special order would have no effect on the company’s totalfixed manufacturing overhead costs. The customer would like somemodifications made to product K19 that would increase the variablecosts by $4.90 per unit and that would require a one-timeinvestment of $23,000 in special molds that would have no salvagevalue. This special order would have no effect on thecompany’s other sales. The company has ample spare capacityfor producing the special order.
Required:
Determine the effect on the company’s total net operatingincome of accepting the special order. Show your work

White company has two departments, cutting and finishing. the company uses a job-order costing system and computes a predetermined overhead rate in each department. the cutting department bases its rate on machine-hours, and the finishing department bases its rate on direct labor-hours. at the beginning of the year, the company made the following estimates: department cutting finishing direct labor-hours 6,000 30,000 machine-hours 48,000 5,000 total fixed manufacturing overhead cost $ 264,000 $ 366,000 variable manufacturing overhead per machine-hour $ 2.00 " variable manufacturing overhead per direct labor-hour " $ 4.00 required: 1. compute the predetermined overhead rate for each department. 2. the job cost sheet for job 203, which was started and completed during the year, showed the following: department cutting finishing direct labor-hours 6 20 machine-hours 80 4 direct materials $ 500 $ 310 direct labor cost $ 108 $ 360 using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to job 203. 3. would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates?

The uptowner just paid an annual dividend of $4.12. the company has a policy of increasing the dividend by 2.5 percent annually. you would like to purchase shares of stock in this firm but realize that you will not have the funds to do so for another four years. if you require a rate of return of 16.7 percent, how much will you be willing to pay per share when you can afford to make this investment?

Samantha is interested in setting up her own accounting firm and wants to specialize in the area of accounting that has experienced the most significant growth in recent years. which area of accounting should she choose as her specialty? samantha should choose as her specialty.