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Garcia Company produces a part that is used in the manufacture of one of its products. The annual costs associated with the production of 5,000 units of this part are as follows: Direct materials $108,000 Direct labor 156,000 Variable factory overhead 72,000 Fixed factory overhead 168,000 Total costs $504,000 Of the fixed factory overhead costs, $72,000 are avoidable. Another company has offered to sell 5,000 units of the same part to Garcia for $105.60 per unit. The facilities currently used to make the part can be rented out to another manufacturer for $72,000 per year. What should Garcia Company do? A) Make the part to save $48,000. B) Buy the part to save $24,000. C) Make the part to save $96,000. D) Buy the part to save $72,000.
lance lawn services reports warranty expense by estimating the amount that eventually will be paid to satisfy
There were 7,500 units in the department's beginning work in process inventory, two thirds complete with respect to conversion costs. During March, 52,500 units were started and 50,000 were completed and transferred out of the department. The endi..
mirk labs is a pharmaceutical company that currently enjoys a patent monopoly in europe canada and the united states
on january 1 2014 hammer company listed the following shareholders equity section of its balance sheetcontributed
what is the purpose of cafr? what are the components of cafr? why is the federal government not subject to gasb 34? how
Natali Vision sells 5,000 pairs of sunglasses per month at $40 each with a desired profit margin of 25%. Fixed costs are $20,000. What is the variable cost per unit?
Budgeting is an important internal activity. Preparing budgets involve forecasting sales and estimating costs. For this SLP, you will prepare a flexible budget for next year for the company of your choice. The budget needs to be realistic and base..
Based purely on assets, how many funds should be displayed as major funds?
computation of inputs allowed direct materials and direct laborduring the year minot company produced 120000 drills for
british productions performs london shows. the average show sells 900 tickets at 65 per ticket. there are 155 shows a
Suppose the company changed its depreciation calculation procedures (still within GAAP) such that its depreciation expense doubled. How would this change affect Brandywine's net income, total profit margin, and cash flow?
Diane purchased a factory building on November 15, 1993, for $5,000,000. She sells the factory building on February 2, 2009. Determine the cost recovery deduction for the year of the sale.
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