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The make or buy decision In addition to the product cost information for Lakeside, Inc., in Mini Exercise 16.1, product engineering has determined that a certain part of the product conversion process could be outsourced. Raw material costs would not be affected, but direct labor and variable overhead costs would be reduced by 30%. No other opportunity is currently feasible for unused production capacity.In Mini Exercise 16.1, Lakeside, Inc., produces a product that currently sells for $36 per unit. Current production costs per unit include direct materials, $10; direct labor, $12; variable overhead, $5; and fixed overhead, $5. Product engineering has determined that certain production changes could refine the product quality and functionality. These new production changes would increase material and labor costs by 20% per unit.Required:
Should Lakeside outsource part of the conversion process at a cost of $4 per unit?
Consider the following actions of a college trying to manage the costs of its library.
Complete the schedule to compute the pool rates for the different activities.
Find Missing Data for Profit Variance Analysis
A corporation has 100 shares of $100 par common stock outstanding and 100 shares of $50 par preferred stock, 8%. The total dividend declared is $30,000 and the preferred stock is fully participating. Show how the dividend would be allocated.
Prepare a cash budget for the months of October, November and December 2015 and write a report on the cash position over this period, and in particular on ways in which you think it could be improved.
Record the necessary adjusting entries at December 31, 2012, for Hurricane Company for each of the situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded.
Discuss how the management and risk at each level of the corporation is brought together into a comprehensive risk management program.
How much will Ezra collect in March on a $220,000 credit sale in January? If production equals sales and there are no beginning or ending inventories
Journalize the entries to record the transactions and Selected stock transactions
Janel Co acquired a building valued at $120,000 for property tax purpose in exchange for$8,000 shares of its 5 par common stock. The stock is selling for $15 per share. At what amount should the building be recorded by Janel Co.?
Prepare the journal entry on P Companys books to record the acquisition of the assets and assumption of the liabilities of S Company.
Toni is relying on financial feedback, and the product costing method adopted by the large bakery. What are the strengths and weaknesses of these approaches?
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