Normal selling price = 550

Extra Labor cost = 0

Special order
Incremental revenue
Direct Material Cost
Direct Labor Cost
Fixed Manufacturing Overhead
Variable Manufacturing Overhead
Extra Labor Cost
Total Cost

cost per unit

550
Incremental Cost
105
97
118
55
0
375

cost for 30 persons

16,500
3150
2910
3540
1650
0
11250

Total Incremental Cost

Total Incremental Profit

?
?

SPECIAL ORDER DECISION

(Chicken Biryani)

MAKE OR BUY DECISION

(French Fries 1 packet)
Total Variable Overhead
Total Fixed Manufacturing Overhead

350
625
975

10,500
18,750
29,250

Make or Buy Decision

Per unit packet cost
Make
Buy
Cost of Buying
3700
Cost of Making
Direct Material
950
Direct Labor
466
Total Variable Overhead
350
Fixed FOH
625
2391
3700
Difference in favor of making =

Rs. 39,270

For 30 Packets
Make
Buy
1,11,000
28,500
13,980
10,500
18,750
71,730

1,11,000

Normal selling price = 550

biryani
Extra Labor cost = 0
Normal selling price = 550
Special order
Incremental revenue
Direct Material Cost
Rice
Chicken piece
Spices
oil
Direct Labor Cost
staff
(Manager , chef , helper,
cashier , dishwasher )
Fixed Manufacturing Overhead
Rent
Electricity
Salaries
Gas (LPG)
Variable Manufacturing
Overhead
Packaging
Transportation
Preservation
Gloves , Hats , etc
Extra Labor Cost
Total Cost
Total Incremental Cost
Total Incremental Profit

cost per unit

550
Incremental Cost
105

cost for 30 persons

16,500
3150

97

2910

118

3540

55

1650

0
375

0
11250
?
?

MAKE OR BUY DECISION

(French Fries 1 packet)
Total Variable Overhead
Total Fixed Manufacturing Overhead

350
625
975

10,500
18,750
29,250

Make or Buy Decision

Per unit packet cost
Make
Buy
Cost of Buying
3700
Cost of Making
Direct Material
950
potato
vinegar
salt
merination
Direct Labor
466
Staff
(Manager , Cashier , Chef,
Helper, Dishwasher)
Total Variable Overhead
350
Fixed FOH
625
2391
3700
Difference in favor of making =

Rs. 39,270

For 30 Packets
Make
Buy
1,11,000
28,500

13,980

10,500
18,750
71,730

1,11,000