User Account

All Pages

Facilities presently devoted to production of part x

Assignment Help Accounting Basics
Reference no: EM131754993

Lee Company makes 30,000 units per year of Part X for use in one of its products. Lee Company incurred the following manufacturing costs when producing the 30,000 units of Part X.

Direct materials $800,000
Direct labor 450,500
Variable manufacturing overhead 95,000
Fixed manufacturing overhead 110,000
Total $1,455,500

Required

Assume Lee Company has no alternative use for the facilities presently devoted to production of Part X and that none of the fixed costs are avoidable. If the outside supplier offers to sell Part X for $45.00 each, should Lee Company accept the offer? Please clearly state your answer and support your answer with appropriate calculations.

Reference no: EM131754993

Questions Cloud

Suggest that the population median slapshot : Use the Wilcoxon rank-sum test with a = 0.01 to determine whether there is any evidence to suggest that the population median slapshot speed of NHL defensemen
Describe the specific target market : Describe the specific target market. Develop strategies for entering the target market. Create a plan for entering the target market.
Value of the test engineering group test program : Further, he says that for Superlights with high repair cost, the test batch will pass his test with a likelihood of only 30%.
Discuss about the good wife vs loose woman : Discuss about the Good wife vs loose woman in the book of Proverbs and Sirach.
Facilities presently devoted to production of part x : Assume Lee Company has no alternative use for the facilities presently devoted to production of Part X
How you would enter a specific global market using strategy : Identify a non-global company. Create a 3-4 page description of how you would enter a specific global market using your chosen entry strategy.
Find the p value associated with test : Use the Wilcoxon rank-sum test to determine whether there is any evidence to suggest that the population median holding temperatures are different.
What effect do these frequent metaphors have on you : What do you think the motorcycle symbolizes for the two travelers? What effect do these frequent metaphors have on you as the reader?
Draw the decision diagram for the aircraft company : Given what the stress group has told him regarding the Superlight, the Test Engineering group manager claims that his test program would be of little value.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Wrote off against the allowance account the amount

Aug.23. Wrote off against the allowance account the amount charged to Soto Co. on May 17 for the dishonored note dated March 18.

  Kuhns corp has 200000 shares of preferred stock outstanding

kuhns corp. has 200000 shares of preferred stock outstanding that is cumulative. the dividend is 6.50 per share and has

  Insurance premiums of 840 for salary continuation payments

rex age 55 is an officer of blue company which provides him with the following nondiscriminatory fringe benefits in

  A newly created design business called smart art is just

a newly created design business called smart art is just finishing up its first year of operations. during the year

  Haywood company sells a single product with a contribution

haywood company sells a single product with a contribution margin of 5 per unit fixed costs of 74400 and sales for the

  Explain to jane what action she should take

Jane, who is a minority shareholder not on the board, gets no dividends and wishes to do something about this state of affairs. Explain to Jane what action she should take.

  Determine the gross profit rate

A company shows the following balances: sales: 800,000, sales returns and allowances: 125,000, sales discounts: 25,000, cost of goods sold: 481,000. What is the gross profit rate?

  Required journal entries for the two events in december

Give the required journal entries for the two events in December. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the balance sheet and income statement for 2015. On the basis of the data available, does ..

  The firms tax rate is 40 on ordinary income if the ebit is

gray has a current capital structure consisting of 400000 of 12 annual interest debt and 50000 shares of common stock.

  George jetsons rosies sell for 200 per unit and their

george jetsons rosies sell for 200 per unit and their variable costs per unit are 110. the fixed costs are 500000. if

  Calculate debt-equity ratio

HINT: calculate debt-equity ratio, fixed assets ratio,proprietary ratio. Current ratio and liquidity ratio.

  What is the target net income

A company requires $1,020,000 in sales to meet its net income target. What is the target net income

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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