Figure 13-1. Fuller Company Makes Frames. a Customer Wants to Place a Place

question 84

Multiple Choice

Figure 13-1.
Fuller Company makes frames. A customer wants to place a special order for 600 frames in green with the company logo painted on the frame, to be priced at $40 each. Normally, Fuller would charge $90 per frame for this type of order. Fuller figures that wood and glass will cost $16 per frame, variable overhead (machining, electricity) is $4 per frame, direct labor is $12 per frame, and one setup will be required at $1,000 per setup. The set-up charge costs are 100% labor. Currently, the workers needed to set up for and make the frames are working at Fuller. Their wages will be paid whether or not the special order is accepted. Fuller's policy is to avoid layoffs to the extent possible.
-Refer to Figure 13-1. Which of the following is irrelevant to the special order decision?

• A) cost of wood and glass
• B) direct labor cost
• C) machining and electricity cost
• D) $40 price
• E) All of these are relevant.

---

Definitions:

Censorship

The practice of officially examining books, movies, news reports, and other media, and suppressing unacceptable parts.

Sodium Levels

the concentration of sodium ions, essential for body fluid balance but high levels can lead to health issues.

Consistency

The degree of uniformity, steadiness, or predictability in an object, substance, or process over time.

Concise Language

The use of few words to convey much information or meaning, avoiding unnecessary details or filler words.