I look for the correct answers for BOTH QOUESTIONS : 12-6 : Eley Corporation pro

Question

I look for the correct answers for BOTH QOUESTIONS :

12-6 :

Eley Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 54,000 units per month is as follows:

An order has been received from an overseas customer for 3,400 units to be delivered this month at a special discounted price. This order would have no effect on the company's normal sales and would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $2.60 less per unit on this order than on normal sales.

Suppose the company is already operating at capacity when the special order is received from the overseas customer. What would be the opportunity cost of each unit delivered to the overseas customer?

12-8 :

Nicklin Corporation is considering two alternatives, code-named M and N. Costs associated with the alternatives are listed below:

Which costs are relevant and which are not relevant in the choice between these two alternatives?

What is the differential cost between Alternative M and Alternative N? (Enter your answer as a negative amount with a minus sign. Omit the "$" sign in your response.)

  Direct materials $49.60   Direct labor $9.50   Variable manufacturing overhead $2.50   Fixed manufacturing overhead $20.10   Variable selling & administrative expense $4.60   Fixed selling & administrative expense $22

Explanation / Answer

12.6) The opportunity cost per each units is $2.60

12.8) a.

b) The differential cost between M and N

Supplies Cost Relevant :$8,000 Power Cost Irrelevant:(under both alternative are same) Inspection costs Relevant ; $11,500 Assembly cost Relevant : $11,000

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