Problem 1: 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?
A) $36,700
B) $40,750
C) $54,000
D) $58,050
Problem 2: How does managerial and financial accounting differ in terms of the amount of detail presented and nonmonetary and monetary information?
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