Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of...
Question:
Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 17,000 golf discs is:
| Materials | 9,180 |
| Labor | 24,990 |
| Variable overhead | 17,850 |
| Fixed overhead | 34,340 |
| Total | $86,360 |
Gruden also incurs 6% sales commission ($0.42) on each disc sold. McGee Corporation offers Gruden $4.95 per disc for 5,570 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Gruden. If Gruden accepts the offer, its fixed overhead will increase from $34,340 to $38,930 due to the purchase new imprinting machine. No sales commission will result from the special order.
Prepare an incremental analysis for the special order (Round answers to 0 decimal places, e.g., 1250. Record negative amounts using either a negative sign preceding the number e.g., -45 or parentheses e.g. (45).)
| Reject Order | Accept Order | Net Income Increase (Decrease) | |
|---|---|---|---|
| Revenues | |||
| Materials | |||
| Labor | |||
| Variable overhead | |||
| Fixed overhead | |||
| Sales commissions | |||
| Net income |
Incremental Analysis:
It is a management decision making technique in which the relevant financial data is estimated for different alternatives. The relevant financial data is calculated for revenues and expenses for each of the alternative. It can be used for different business situations like accepting or rejecting special price order.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerThe following information of Gruden Company is given as under
- The sales price per unit is $7 per unit to normal customers
- The current operating...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Incremental Analysis: Definition & Examples
from
Chapter 9 / Lesson 7
9.2K
Learn about incremental analysis. Understand what incremental analysis is, learn the applications of incremental analysis, and see examples of incremental analysis.
Related to this Question
- Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 18,600 golf discs is: Materials $ 8,556 Labor 29,016 Variable overhead 19,530 Fixed over
- Gruden Company produces golf discs which it normally sells to retailers for $7.06 each. The cost of manufacturing 19,900 golf discs is : Materials $10,149 Labor 30,845 Variable overhead 20,099 Fixed
- Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 19,100 golf discs is Materials $9,550 Labor 20,414 Variable Overhead 20,437 Fixed overhe
- Gruden Company produces golf discs which it normally sells to retailers for $7.24 each. The cost of manufacturing 22,600 golf discs is: Materials $11,978 Labor 34,804 Variable overhead 23,730 Fixed o
- Gruden Company produces golf discs which it normally sells to retailers for $7.07 each. The cost of manufacturing 24,500 golf discs is: Materials $13,475 Labor 36,015 Variable overhead 24,500 Fixed o
- Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 15,400 golf discs is: Materials $8,162 Labor 22,792 Variable overhead 16,632 Fixed ove
- Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 23,600 golf discs is: Materials $12,036 Labor 35,400 Variable overhead 23,128 Fixed o
- Gruden Company produces golf discs which it normally sells to retailers for $6.87 each. The cost of manufacturing 18,500 golf discs is: Materials $9,250, Labor 28,305, Variable overhead 18,500, Fixed
- Gruden Company produces golf discs which it normally sells to retailers for $7.02 each. The cost of manufacturing 16,400 golf discs is: Materials $8,528 Labor 25,092 Variable overhead 16,564 Fixed ove
- Gruden Company produces golf discs which it normally sells to retailers for $7.19 each. The cost of manufacturing 23,400 golf discs is: Materials $12,402 Labor 34,398 Variable overhead 22,698 Fixed o
- Gruden Company produces golf discs which it normally sells to retailers for $7.14 each. The cost of manufacturing 19,500 golf discs is: Materials$10,530 Labor27,945 Variable overhead 19,305 Fixed over
- Gruden Company produces Golf discs, which it normally sells to retailers for $7 each. The cost of manufacturing 20,000 golf discs is: Materials 10,000 Labour 30,000 Variable overhead 20,000 Fixed ove
- Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,100 golf discs is: Materials $10,653 Labor $29,346 Variable overhead $20,100 Fixed ov
- Gruden Company produces golf discs which it normally sells to retailers for $6.90 each. The cost of manufacturing 19,900 golf discs is: Materials $10,348 Labor 31,243 Variable overhead 20,696 Fixed overhead 40,397 Total $102,684 Gruden also incurs 4% sal
- Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,200 golf discs is: Materials $9,090 Labor 29,290 Variable overhead 19,392 Fixed overhe
- Gruden Company produces golf discs which it normally sells to retailers for $7.17 each. The cost of manufacturing 24,400 golf discs is: Materials $11,468 Labor 37,820 Variable overhead 23,424 Fixe
- Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,000 golf discs is: Materials $10,000 Labor 30,000 Variable overhead 20,000
- Gruden Company produces golf discs which it normally sells to retailers for $7.14 each. The cost of manufacturing 21,100 golf discs is: Materials - $10,761 ; Labor - 30,173 ; Variable overhead - 23,21
- Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,200 golf discs is: Materials $10,100 Labor $29,088 Variable overhead $22,018
- Gruden Company produces golf discs which it normally sells to retailers for $ 7 each. The cost of manufacturing 16,700 golf discs is: Materials$ 8,350 Labor24,883 Variable overhead17,702 Fixed overhea
- Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 17, 000 golf discs is: Material $9,180 Labor 24,990 Variable overhead 17,850 Fixed overh
- Gruden Company produces golf discs which it normally sells to retailers for $7.04 each. The cost of manufacturing 21,900 golf discs is: Materials$10,512 Labor33,945 Variable overhead22,338 Fixed overh
- Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 23,600 golf discs is: Materials $12,030 Labor 34,400 Variable overhead 23,128 Fixed overhead 47,200 Total $117,764 Gruden also incurs 8% sales c
- Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 15,100 golf discs is: Materials $7,852 Labor 21,744 Variable overhead 14,496 Fixed overhead 30,502 Total $74,594 Gruden also incurs 6% sales com
- Gruden Company produces golf discs, which it normally sells to retailers for $6.84 each. The cost of manufacturing 19,000 golf discs is: Materials $9,880 Labor 30,020 Variable overhead 20,710 Fixed overhead 37,810 Total $98,420 Gruden also incurs 6% sales
- Gruden Company produces golf discs which it normally sells to retailers for $7.17 each. The cost of manufacturing 24,400 golf discs is: Materials $11,468 Labor 37,820 Variable overhead 23,424 Fixed overhead 49,288 Total $122,000 Gruden also incurs a 5% sa
- Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 17,800 golf discs is: Materials $8,366 Labor 25,988 Variable overhead 17,266 Fixed overhead 35,600 Total $87,220 Gruden also incurs a 7% sales c
- Gruden Company produces golf discs which it normally sells to retailers for $7.21 each. The cost of manufacturing 21,900 golf discs is: Materials $11,607 Labor 30,879 Variable overhead 21,024 Fixed overhead 42,705 Total $106,215 Gruden also incurs 6% sale
- Gruden Company produces golf discs which it normally sells to retailers for $7.09 each. The cost of manufacturing 19,300 golf discs is: Materials $9,650 Labor 28,950 Variable overhead 20,265 Fi
- Gruden Company produces golf discs which it normally sells to retailers for $6.94 each. The cost of manufacturing 22,000 golf discs is: Materials $12,100 Labor 32,560 Variable overhead 22,880 Fixed overhead 42,900 Total $110,440 Gruden also incurs 7% sale
- Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 22,200 golf discs is:
- Gruden Company produces golf discs which it normally sells to retailers for $ Exercise 20-2 Gruden Company produces golf discs which it normally sells to retailers for $6.94 each. The cost of manufact
- Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 18,300 golf discs is: Gruden also incurs 4% sales commission ($0.28) on each disc sold.
- Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,000 golf discs is: Gruden also incurs 5% sales commission ($0.35) on each disc sold. M
- Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,200 golf discs is: Gruden also incurs 8% sales commission ($0.54) on each disc sold. M
- Gruden Company produces golf discs which it normally sells to retailers for $6.95 each. The cost of manufacturing 22,700 golf discs is: [TABLE] Gruden also incurs 5% sales commission ($0.35) on each disc sold. McGee Corporation offers Gruden $5 per disc
- Larkin Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is: Materials $10,000 Labor 30,000 Variable overhead 20,000 Fixed ove
- Larkin Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is: Materials $10,000 Labor 30,000 Variable overhead 20,000 Fixed o
- Larkin Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is: \\ Materials: $10,000 Labor: $30,000 Variable overhead: $20,000 Fixed overhead: $40,000 Total: $100,000 \\ Innova al
- Gruden company has received an after from McGee corporation to purchase 5, 000 golf balls at $4.80 for a special sale to an overseas customer. This would be in addition to Gruden's budgeted sales of 2
- Tee Times, Inc. produces and sells the finest quality golf clubs in all of Clay County. The company expects the following revenues and costs in 2009 for its Elite Quality golf club sets: Revenues (400 sets sold @ $600 per set) $240,000 Variable costs $1
- Mr. X is considering opening a new factory producing golf balls. The factory will cost $1,350,000, and producing 12 balls will cost $15. Boxes of 12 balls will retail for $32. a. How many boxes will need to be sold to break even? b. What will the profit b
- Tee Times, Inc. produces and sells the finest quality golf clubs in all of Clay County. The company expects the following revenues and costs in 2004 for its Elite Quality golf club sets: Revenues (400 sets sold @ $600 per set) $240,000 Variable costs $160
- Ricky Sports Company produces baseball bats which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 baseball bats is: Materials $10,000 Labor 30,000 Variable overhead 20,000 Fixed overhead 40,000 Total $100,000 Ricky also incurs
- McGilla Golf decided to sell a new line of golf clubs. The clubs will sell for $850 per set and have a variable cost of $450 per set. The company has spent $155,000 for a marketing study that determin
- Kirk Company sells bikes for $600 each. The company currently sells 7,500 bikes per year and could make as many as 10,000 bikes per year. The bikes cost $450 to make; $300 in variable costs per bike a
- Kirk Company sells bikes for $650 each. The company currently sells 8,500 bikes per year and could make as many as 10,500 bikes per year. The bikes cost $550 each to make; $400 in variable costs per bike and $250 of fixed costs per bike. Kirk received an
- McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $1,100 per set and have a variable cost of $500 per set. The company has spent $164,000 for a marketing study that de
- Hawthorne Golf, the maker of a sought-after set of golf clubs, was formed in 2012. The selling price for each golf club set is $1,700, variable production costs are $900 per unit, fixed production cos
- An outside manufacturer has offered to produce Daks for Andretti Company and to ship them directly to Andretti's customers. If Andretti Company accepts this offer, the facilities that it uses to produce Daks would be idle; however, fixed overhead costs wo
- The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez's autograph stamped on them. Each bat sells for $61 and has a variable cost of $32. There are $43,790 in fixed costs involved i
- Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The company?s discount rate is 17%. After careful study, Oakmont estimated the following costs and reve
- Andretti Company has a single product called a Dak. The company normally produces and sells 78,000 Daks each year at a selling price of $42 per unit. The compa
- Blackbird Golf Carts makes custom golf carts that it sells to dealers across the Southeast. The carts are produced in two departments, fabrication and custom finishing. The company uses a job-costing
- It costs Homer's Manufacturing $0.75 to produce baseballs and Homer sells them for $4.00 a piece. Homer pays a sales commission of 5% of sales revenue to his sales staff. Homer also pays $12,000 a month rent for his factory and store, and also pays $75,00
- Rooney Company makes fine jewelry that it sells to department stores throughout the United States. Rooney is trying to decide which of the two bracelets to manufacture. Cost data pertaining to the two
- Eckert Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure yardages on the golf course.
- Eckert Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure yardages on the golf course. On
- Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The company's discount rate is 16%. After careful study, Oakmont estimated the following costs and rev
- Jonathan's Golf Club Company (JGCC) is in the process of analyzing its selling costs. For the prior 4 quarters, it had the following selling costs and golf clubs sold: Selling Golf Clubs Costs ($) Sol
- Data concerning three of the company's most popular models appear below. Ski Vault Golf Caddy Fishing Quiver Selling price per unit $ 280 $ 330 $ 175 Variable cost per unit $ 140 $ 210 $ 115 Plastic i
- Fixed versus variable cost behavior. Wray chairs corporation produces ergonomically designed chairs favored by architects. The company normally produces and sells for 4,000 to 10,000 chairs per year.
- A manager of Burns Sporting Goods Company is considering accepting an order from an overseas customer. This customer has requested an order for 200,000 dozen golf balls at a price of $22 per dozen. The variable cost to manufacture a dozen golf balls is $1
- Play Disc makes Frisbee type plastic discs. Each 12 inch diameter plastic disc has the following manufacturing costs: For the coming year, Play Disc expects to make 320,000 plastic discs, and to sell
- Mantle, Inc. produces two types of wooden mallets, Ash and Oak, in its Miami factory. Data relating to the mallets are given below: |Product | Ash | Oak |Unit selling price | $30 |$28 Variable manufacturing costs |$11 |$12 |Variable selling costs |$1
- Howell Corporation produces an executive jet for which it currently manufactures a fuel valve; the cost of the valve is indicated below: Cost per Unit Variable Cost
- Olympic Products Inc. manufactures and distributes barbeque grills. The company normally sells 1,000 of these grills each month for a price of $140 each. The material cost for a grill is $44 and the direct labor is $22. The variable overhead cost is $13 p
- Golf Mart is a retail sports store carrying golf apparel and equipment. The store is at the end of its second year of operation and is struggling. A major problem is that its cost of inventory has con
- Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The company's discount rate is 18%. After careful study Oakmont estimated the following costs and reven
- A company manufactures volleyballs. The company has a ball that sells for $42. At present, the volleyball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $25.20 per volleyball, of wh
- Top Disc manufactures frisbees. The following information is available for 2013, the company's first year in business when it produced 325,000 units. Revenue of $450,000 was generated by the sale of 180,000 frisbees. a. What is the variable production cos
- Mission Electronics manufactures and sells basic DVD players under various generic store brand names. The cost of one of their models follows: Materials $18.00 Labor $12.00 Variable overhead $5.00 Fixed overhead ($2,700,000 per year; 450,000 units per ye
- Olympic Products Inc. manufactures and distributes barbecue grills. The company normally sells 1,000 of these grills each month for a price of $140 each. The material cost for a grill is $44 and the direct labor is $22. The variable overhead cost is $13 p
- Olympic Products Inc. manufactures and distributes barbecue grills. The company normally sells 1,000 of these grills each month for a price of $140 each. The material cost for a grill is $44, and the direct labor is $22. The variable overhead cost is $13
- Eckert Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure yardages on the golf course. One small laser gun, called LittleLaser, appears to have
- Maize Plastics manufactures and sells 60 bottles per day. Fixed costs are $29,000 and the variable costs for manufacturing 60 bottles are $42,000 Each bottle is sold for $1,500. How would the daily pr
- Slugger Corporation produces baseball bats for kids that it sells for $36 each. At capacity, the company can produce 50,000 bats a year. The costs of producing and selling bats are as follows: Cost p
- High Desert Potteryworks makes a variety of pottery products that it sells to retailers such as Home Depot. The company uses a job-order costing system in w/ch predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predete
- Bob's Bobcats can make two models of bobcats' the Bill and the Buck. Each Bill sells for $7,500, has $5,000 in variable costs, and takes 100 hours to make. Each Buck sells for $14,000, has $9,500 in variable costs, and takes 300 hours to make. Bob's Bobca
- Howell Corporation produces an executive jet for which it currently manufactures a fuel valve; the cost of the valve is indicated below: The company has an offer from Duvall Valves to produce the par
- Golf Challenge Corp. is a retail sports store carrying gold apparel and equipment. The store is at the end of its second year of operation and is struggling. A major problem is that its cost of invent
- Yokohama Company produces baseball bats. for kids that it sells for $36 each. At capacity, the company can produce 50,000 bats a year although the company is currently producing and selling 40,000 bats. The costs of producing and selling 50,000 bats are a
- Mesa Designs produces a variety of hardware products, primarily for the do-it-yourself (DIY) market. As part of your job interview as a summer intern at Mesa, the cost accountant provides you with the
- Northwood Company manufactures basketballs. The company has a ball that sells for $35. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $24.50 per ball, of which
- Northwood Company manufactures basketballs. The company has a ball that sells for $42. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $25.20 per ball, of which
- Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $15 per ball, of which
- Northwood Company manufactures basketballs. The company has a ball that sells for $36. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $25.20 per ball, of which
- Northwood Company manufactures basketballs. The company has a ball that sells for $30. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $21.00 per ball, of which
- Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $15 per ball, of which 60%
- Northwood Company manufactures basketballs. The company has a ball that sells for $49. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $34.30 per ball, of which
- Mesa Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $74. Production costs are $44 variable and $15 fixed. Mesa Verde is c
- Sports Specialty Inc. produces a bicycle that it normally sells wholesale for $250 per bike. The variable costs of production are $160, and the fixed costs for this product line are $154,000 per month. The company has been selling this product at a rate o
- Williams & Williams Co. produces plastic spray bottles and wants to earn a before-tax profit of $200,000 next quarter. Variable costs are $0.50 per bottle, fixed costs are $400,000, and the selling pr
- Sports Specialty Inc. produces a bicycle that it normally sells wholesale for $275 per bike. The variable costs of production are $188 and the fixed cost for this product line is $185,000 per month. The company has been selling this product at a rate of 2
- Sports Specialty Inc. produces a bicycle that it normally sells wholesale for $250 per bike. The variable costs of production are $160 and the fixed cost for this product line is $154,000 per month. The company has been selling this product at a rate of 2
- The Eagles sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $50 throughout the country to loyal alumni of over 2,100 schools. Their variable costs are 41% of sales; fixed costs are $118,000
- Safari Industries makes balls. The fixed cost of operating the workshop for a month is $500. Each ball requires materials that cost $2 and takes one hour to make. The ball maker is paid $10 per hour. The balls are sold to a wholesaler for $14 each and the
- High Desert Potteryworks makes a variety of pottery products that it sells to retailers such as Home Depot. The company uses a job-order costing system in which predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predet
- A manager of Coastal Sporting Goods Company is considering accepting an order from an overseas customer. This customer has requested an order for 50,000 dozen golf balls at a price of $12 per dozen. The variable cost to manufacture a dozen golf balls is $
- Rutkey Collectibles is a small toy company that manufactures and sells metal replicas class sic cars. Each car sells for $40. The cost of each unit follows: Materials $12 Labor 8 Variable overhead 4
Explore our homework questions and answers library
Browse
by subject