Answered You can hire a professional tutor to get the answer.
* Question 1 Shannon Inc. has been manufacturing its own shades for its table lamps. The company is currently operating at 100% of capacity. Variable...
Shannon Inc. has been manufacturing its own shades for its table lamps. The company is currently operating at 100% of capacity. Variable manufacturing overhead is charged to production at the rate of 53% of direct labor cost. The direct materials and direct labor cost per unit to make the lamp shades are $3.95 and $5.97, respectively. Normal production is 37,600 table lamps per year.A supplier offers to make the lamp shades at a price of $13.67 per unit. If Shannon Inc. accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $37,600 of fixed manufacturing overhead currently being charged to the lamp shades will have to be absorbed by other products.
