Answer the Following Questions Using the Information Below:
Grant's Cakes

question 30

Multiple Choice

Answer the following questions using the information below:
Grant's Cakes is approached by Ms Tammy Wang,a new customer,to fulfil a large one-time-only special order for a product similar to one offered to regular customers.The following per unit data apply for sales to regular customers:
$$\begin{array} { l r } \text { Direct materials } & \$ 455 \\\text { Direct labour } & 300 \\\text { Variable manufacturing support } & 45 \\\text { Fixed manufacturing support } & 100 \\\text { Total manufacturing costs } & 900 \\\text { Mark-up (60\%) } & \underline { 540 } \\\text { Targeted selling price } & \$ 1440\end{array}$$ Grant's Kitchens has excess capacity.Ms Wang wants layered cream cheese pound cakes rather than plain pound cakes,so direct material costs will increase by $30 per unit.
-For Grant's Cakes,what is the minimum acceptable price of this one-time-only special order?

• A)$830
• B)$785
• C)$930
• D)$1440

Understand the significance of ethical dilemmas and ethical lapses, and how to distinguish between them.

Comprehend the concept of information overload and strategies to mitigate it.

Recognize the potential of technology to both facilitate and hinder the communication process.

Understand the implications of constant connectivity for individuals and organizations.

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Definitions:

Underapplied

A situation in cost accounting where the allocated manufacturing overhead costs are less than the actual overhead expenses incurred.

Overapplied

A condition in costing where the allocated or applied costs exceed the actual costs incurred.

Adjusted Cost

The revised basis of an asset for tax purposes after adjusting for factors such as depreciation or improvements.

Goods Sold

The term refers to the total quantity of products that a company has sold to its customers during a specific period.