Normal selling price = 550

Extra Labor cost = 0

Special order

cost per unit cost for 30 persons

Incremental revenue 550 16,500
Incremental Cost
Direct Material Cost 105 3150
Direct Labor Cost 97 2910
Fixed Manufacturing Overhead 118 3540
Variable Manufacturing Overhead 55 1650
Extra Labor Cost 0 0
Total Cost 375 11250

Total Incremental Cost ?

Total Incremental Profit ?
SPECIAL ORDER DECISION (Chicken Biryani)

MAKE OR BUY DECISION

(French Fries 1 packet)
Total Variable Overhead 350 10,500
Total Fixed Manufacturing Overhead 625 18,750
975 29,250

Make or Buy Decision

Per unit packet cost For 30 Packets
Make Buy Make Buy
Cost of Buying 3700 1,11,000
Cost of Making
Direct Material 950 28,500
Direct Labor 466 13,980
Total Variable Overhead 350 10,500
Fixed FOH 625 18,750
2391 3700 71,730 1,11,000

Difference in favor of making = Rs. 39,270

 Normal selling price = 550
biryani
Extra Labor cost = 0
Normal selling price = 550
Special order

cost per unit cost for 30 persons

Incremental revenue 550 16,500
Incremental Cost
Direct Material Cost 105 3150
Rice
Chicken piece
Spices
oil
Direct Labor Cost 97 2910
staff
(Manager , chef , helper,
cashier , dishwasher )
Fixed Manufacturing Overhead 118 3540
Rent
Electricity
Salaries
Gas (LPG)
Variable Manufacturing 55 1650
Overhead
Packaging
Transportation
Preservation
Gloves , Hats , etc
Extra Labor Cost 0 0
Total Cost 375 11250

Total Incremental Cost ?

Total Incremental Profit ?
 MAKE OR BUY DECISION
(French Fries 1 packet)
Total Variable Overhead 350 10,500
Total Fixed Manufacturing Overhead 625 18,750
975 29,250

Make or Buy Decision

Per unit packet cost For 30 Packets
Make Buy Make Buy
Cost of Buying 3700 1,11,000
Cost of Making
Direct Material 950 28,500
potato
vinegar
salt
merination
Direct Labor 466 13,980
Staff
(Manager , Cashier , Chef,
Helper, Dishwasher)
Total Variable Overhead 350 10,500
Fixed FOH 625 18,750
2391 3700 71,730 1,11,000

Difference in favor of making = Rs. 39,270