(Solved):Rojo Corporation has received a request for a special order of 8,000 units of product W68 for…

 

Question

Rojo Corporation has received a request for a special order of 8,000 units of product W68 for $27.20 each.

Product W68’s unit product cost is $18.50, determined as follows:

Direct materials $2.20
Direct labor 7.90
Variable manufacturing overhead 1.50
Fixed manufacturing overhead 6.90
_____
Unit product cost $18.50
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Direct labor is a variable cost. The special order would have

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