Kasten, Inc budgeted 10,000 widgets for production during 2013. Kasten has capacity to produce 12,000 units. Fied factory overhead is allocated to production. The following estimated costs were provided:Direct material ($7.00/unit) $70,000Direct Labor ($15/hr x 2 hrs/unit) 300,000Vairable manufacturing overhead) $4/unit) 40,000Fixed factory overhead costs ($5/unit) 50,000Total $460,000Cost per unit = $461. Kasten received an order for 1,000 units from a new customer in a country in which Kasten has never done business. This customer has offered $43 per widget. Should Kasten accept the order?2. Kasten received an offer from another company to manufature the same quality widgets for $39. Should Kasten let someone else manufacture all 10,000 widgets and focus only on distribution?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Kasten, Inc budgeted 10,000 widgets for production during 2013. Kasten has capacity to produce 12,000 units. Fied factory overhead is ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Journalize the following transactions for Griffin Company. Assume a perpetual inventory system. Also, assume a constant gross profit ratio for all items sold. Make sure to enter the day for each separate transaction.
Answers (1)
During its first year of operations, a company that incurred $1,000 in production costs reported cost of goods sold of $800 and selling costs of $100. Its ending finished goods inventory was $300. a. Trueb. False
Answers (1)
Dividends are paid on all shares issued by the company including treasury stock. a. True b. False
Answers (1)
Majenta Company uses a standard costing system. The following information pertains to direct labor costs for February: Standard direct labor rate per hour $12.00 Actual direct labor rate per hour $10.
Answers (1)
Country a produces about four times the amount of diamonds in carats produced in country b. if the total produced in both countries is 10,000,000 carats, find the amount produced in each country.
Answers (1)
New Questions in Business
Natasha has $1000 to open a checking account. She can maintain a monthly balance of $600. She also has a savings account at the same bank. Her employer offers direct deposit and she plans to use online bill paying.
Answers (1)
Ortega Company manufactures computer hard drives. The market for hard drives is very competitive. The current market price for a computer hard drive is $42. Ortega would like a profit of $12 per drive.
Answers (1)
Fact Pattern: Conner purchased 300 shares of Zinco stock for $30,000 in 1994. On May 23, 2013, Conner sold all the stock to his daughter Alice for $20,000, its fair market value at the time. Conner realized no other gain or loss during 2013.
Answers (1)
When authority is concentrated at the top level of management, the organization is said to be decentralized. a. true b. false?
Answers (1)
On September 1, Advantage Maintenance Company contracted to provide monthly maintenance services for the next five months at a rate of $3,000 per month. The client paid Advantage $15,000 on September 1. The maintenance services began on that date.
Answers (1)