Bell company makes fax machines

Assignment Help Managerial Accounting
Reference no: EM13902213

Bell Company makes fax machines. Currently Bell makes all components of the fax machine in house. An outside company has offered to supply one component, part number B48 for $8 each. Bells uses 15,000 of these components per years. Costs of B48 are as follows.

 

D.M.                                           $4.00

D.L.                                             2.00

Variable OH                          1.50

Fixed OH                                  3.00

 

Assume that fixed overhead is allocated and cannot be avoided. Should Bell purchase the part from the outside supplier and how much will income increase or decrease.

Reference no: EM13902213

Questions Cloud

Measuring innovation : This Project is about researching and preparing a four-part presentation in order to succinctly describe and evaluate four contemporary managerial accounting theories or models that are commonly applied in business settings.
Aerotoy company makes toy airplanes : Aerotoy Company makes toy airplanes. One plane is an excellent replica of a 737; it sells for 5$. Vacation Airlines wants to purchase 12,000 planes at $1.75 each to give to children flying unaccompanied.
Compute the average total depreciable life of assets in use : Compute the average total depreciable life of assets in use for each firm. Compute the average age to date of depreciable assets in use for each firm at the end of the year.
Discuss the cultural contributions of group : Discuss the cultural contributions of each group and the legacy that endure in Latin American culture today/ What was the significance of Maize (corn) cultivation in these civilizations?
Bell company makes fax machines : Bell Company makes fax machines. Currently Bell makes all components of the fax machine in house. An outside company has offered to supply one component, part number B48 for $8 each. Bells uses 15,000 of these components per years. Costs of B48 are a..
Discuss the logic for use of exchange rates you identified : Identify the exchange rates used to translate income statement and balance sheet items when the foreign currency is defined as the functional currency. Discuss the logic for the use of the exchange rates you identified.
Is functional currency of subsidiary peso or the us dollar : Senior managers of the subsidiary are employees of Qing Corporation who have been transferred to the subsidiary for a tour of international service. Is the functional currency of the subsidiary the peso or the U.S. dollar?
Demonstrate a greater dedication to green practices : The hospitality industry is under increasing pressure to demonstrate a greater dedication to "green" practices. Watch the video Greening a Theme Park to see what one establishment in Denmark is doing to lessen its impact on the environment and discus..
Rainfall events between rivers and streams : What are the differences in response to rainfall events between rivers and streams on highly permeable and impermeable catchments?

Reviews

Write a Review

 

Managerial Accounting Questions & Answers

  Identify the major business and financial risks

Identify the major business and financial risks such as interest rate risk, foreign exchange risk, credit, commodity, and operational risks.

  Preview of financial accountant-forecasting

Generally forecasting and planning is considered the preview of the financial accountant or the forecasting and planning department.

  Spending variance for lesinski snow

Lesinski Snow Removal's cost formula for its vehicle operating cost is $1,770 per month plus $483 per snow-day.

  Statement of cash flows - non-significant

Indicate if each transaction and event is (1) a source of cash, (2) a use of cash, and/or (3) an adjustment leading to a source or use of cash

  Estimate the effect on sales revenue

Estimate the effect on sales revenue resulting from the planned change in fee structure for the next financial year, which starts 1 October and ends on 30 September. State any assumptions that you need to make.

  Why is the cost allocation method used

Why is the cost allocation method used by an organization an important part of its cost accounting system?

  Detailed explanation to management

As you run the simulation keep track of your decisions and keep track of the results - both financial and marketing. You can copy and paste the results into Excel or into a Word document.

  Do you think managements action is ethical

Do you think management's action is ethical? If you were the company controller and were asked to prepare the new report, would you do it? What action would you take?

  Manufacturing cost schedule and income statement

Manufacturing Cost Schedule and Income Statement - prepare a Schedule of Cost of Goods Manufactured, Schedule of Cost of Goods Sold, and an income statement for the Jupiter Manufacturing Co from the information provided.

  Companys overall break-even point

Conway Company sells three products: A,B and C. Product A's unit contribution margin is higher than Product B's and Products B's is higher than Product C's. Which one of the following independent events is most likely to increase the company's ove..

  Chiapas corporation purchased 2000 shares of its 10 par

chiapas corporation purchased 2000 shares of its 10 par value general stock for 120000 on 1st august. it will hold

  Entries for the related transactions of platypus company

Purchase-related transactions - Journalize entries for the related transactions of Platypus Company

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd