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Figure 9-9
Boone Products Had the Following Unit Costs -Refer to Figure 9-9

Question 6

Multiple Choice

Figure 9-9
Boone Products had the following unit costs:  Direct materials £24 Direct labour 10 Variable factory overhead 8 Fixed factory overhead (allocated)  18\begin{array}{lr}\text { Direct materials } & £ 24 \\\text { Direct labour } & 10 \\\text { Variable factory overhead } & 8 \\\text { Fixed factory overhead (allocated) } & 18\end{array}
-Refer to Figure 9-9. A one-time customer has offered to buy 2,000 units at a special price of £48 per unit. Because of capacity constraints, 1,000 units will need to be produced during overtime. Overtime premium is £8 per unit. How much additional profit (loss) will be generated by accepting the special order?


A) £30,000 loss
B) £4,000 loss
C) £24,000 loss
D) £4,000 profit

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