West Co’s manufacturing costs for the period just ended were…

West Co’s manufacturing costs for the period just ended were as follows:                   Direct materials and direct labor                            $700,000                   Other variable manufacturing costs                       100,000                   Depreciation of factory building and                         manufacturing equipment                                   80,000                   Other fixed manufacturing overhead                        18,000                     What amount should be considered product cost for external reporting purposes?

Clay Co. has considerable excess manufacturing capacity. A s…

Clay Co. has considerable excess manufacturing capacity. A special job order’s cost sheet includes the following applied manufacturing overhead costs:                     Fixed costs            $21,000                   Variable costs         33,000                     The fixed costs include a normal $3,700 allocation for in-house design costs, although no in-house design will be done. Instead, the job will require the use of external designers costing $7,750.                     What is the total amount to be included in the calculation to determine the minimum acceptable price for the job?

It costs Garner Company $12 of variable and $5 of fixed cost…

It costs Garner Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 3,000 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Garner has sufficient unused capacity to produce the 3,000 scales. If the special order is accepted, what will be the effect on net income?