Mcniff Corporation Makes a Range of Products

question 239

Essay

Mcniff Corporation makes a range of products. The company's predetermined overhead rate is $28 per direct labor-hour, which was calculated using the following budgeted data:
Management is considering a special order for 200 units of product O96S at $122 each. The normal selling price of product O96S is $149 and the unit product cost is determined as follows:
If the special order were accepted, normal sales of this and other products would not be affected. The company has ample excess capacity to produce the additional units. Assume that direct labor is a variable cost, variable manufacturing overhead is really driven by direct labor-hours, and total fixed manufacturing overhead would not be affected by the special order.Required:The financial advantage (disadvantage) for the company as a result of accepting this special order would be:

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Definitions:

Behavioral Disturbance

Behavioral disturbance refers to actions or reactions that are not typical for the individual or situation, often impacting daily functioning or social interactions.

Alcohol Dependence

A medical condition characterized by an impaired ability to stop or control alcohol use despite adverse social, occupational, or health consequences.

Alcohol-Induced Anxiety Disorder

Anxiety disorder precipitated by excessive alcohol intake, often characterized by symptoms that persist during periods of alcohol abstinence.

Significant Clinical Manifestations

Observable signs and symptoms that are critically important for the diagnosis and management of a medical condition.