Assume the following cost data: $$\begin{array} { l l }
\text { Per-unit costs: } & \
\text { Direct material } & \$ 6 \
\text { Direct labour } & \$ 4 \
\text { Variable overhead } & \$ 2 \
\text { Variable selling } & \$ 4 \
\text { Fixed overhead } & \$ 300 \
\text { Fixed selling } & \$ 400
\end{array}$$ A special order for 100 units is received. The buyer wants his name stamped on each unit. This will increase labour costs by $0.25 per unit and cost $300 for the stamping machine. What price must be charged to earn $300 on the special order?
A) $1,925
B) $1,775
C) $2,225
D) $2,075

Question

Assume the following cost data: $$\begin{array} { l l } 
\text { Per-unit costs: } & \
\text { Direct material } & \$ 6 \
\text { Direct labour } & \$ 4 \
\text { Variable overhead } & \$ 2 \
\text { Variable selling } & \$ 4 \
\text { Fixed overhead } & \$ 300 \
\text { Fixed selling } & \$ 400
\end{array}$$ A special order for 100 units is received. The buyer wants his name stamped on each unit. This will increase labour costs by $0.25 per unit and cost $300 for the stamping machine. What price must be charged to earn $300 on the special order?
A) $1,925
B) $1,775
C) $2,225
D) $2,075

Quizplus · Accepted Answer

The Answer of Assume the following cost data: $$\begin{array} { l l } 
\text { Per-unit costs: } & \
\text { Direct material } & \$ 6 \
\text { Direct labour } & \$ 4 \
\text { Variable overhead } & \$ 2 \
\text { Variable selling } & \$ 4 \
\text { Fixed overhead } & \$ 300 \
\text { Fixed selling } & \$ 400
\end{array}$$ A special order for 100 units is received. The buyer wants his name stamped on each unit. This will increase labour costs by $0.25 per unit and cost $300 for the stamping machine. What price must be charged to earn $300 on the special order?
A) $1,925
B) $1,775
C) $2,225
D) $2,075

Assume the Following Cost Data A Special Order for 100 Units Is Received