For which it currently manufactures a fuel value

Assignment Help Cost Accounting
Reference no: EM13494500

Howell Corporation produces an executive jet for which it currently manufactures a fuel value; the cost of the value is indicated below:

Cost Per unit

                                Variable Cost:

                                Direct material                                                                                               $900

                                Direct labor                                                                                                   $600

                                Variable Overhead                                                                                          $300

                                Total Variable Costs                                                                                                      $1800.00

                                Fixed Costs:

                                Depreciation of Equipment                                                                               $500

                                Depreciation of Building                                                                                   $200

                                Supervisory salaries                                                                                       $300

                                Total Fixed Cost                                                                                                           $1,000.00

                                  Total overall Cost                                                                                                            $2,800.00

The company has an offer from Duvall Valves to produce the part for $2,000 per unit and supply 1,000 valves (the number needed in the coming year). If the company accepts this offer and shuts down production of valves, production workers and supervisors will be reassigned to other areas. The equipment cannot be used elsewhere in the Company, and it has no market value. However, the space occupied by the production of the value can be used by another production group that is currently leasing space for $55,000 per year.

Required: Should the company make or buy the value?

 

Reference no: EM13494500

Questions Cloud

Compute the voltage across the capacitor : A series RC circuit with C = 32 μF and R = 6.8 Ω has a 24 V source in it. With the capacitor initially uncharged, an open switch in the circuit is closed. what is the voltage across the capacitor
Calculate the maximum depth the diver will submerge : A diver of mass 60kg, on entering the water with an initial velocity of 14.87ms-1, experienced a force of resistance due to the opposing motion of magnitude of 180v Newtons, Calculate the maximum depth, in metres the diver will submerge
Explain how many molecules of each gas are present : A sample of air contains 78.08% nitrogen, 20.94% oxygen, 0.0500% carbon dioxide, and 0.930% argon by volume. how many molecules of each gas are present in 8.98 L of the sample at 87 degrees c and 6.45 atm
Computer village sells computer equipment : Determine whether Computer Villages should discontinue the furniture line and the financial benefit (cost) of dropping it.
For which it currently manufactures a fuel value : However, the space occupied by the production of the value can be used by another production group that is currently leasing space for $55,000 per year.
Explain what is the molar mass of the unknown gas : A sample of an unknown gas effuses in 14.7 min. an equal volume of h2 in the same apparatus under the same conditions effuses in 2.42 min. what is the molar mass of the unknown gas
Compute the average force exerted on the ball by wall : A ball of mass 0.40 kg moves horizontally at a velocity of 25.0 m/s. What was the average force exerted on the ball by the wall
Evaluate the ph of aqueous nh3 solution : Calculate the pH of 23.5 mL of a .165 M aqueous NH3 solution after the addition of 21.7 mL of .100 M HCL. The kb for NH3 is 1.8x10(-5)
Prepare the federal individual income tax return : Prepare the Federal Individual Income Tax Return (Form 1040) and supporting forms and schedules for Carrie A. Morgan for 2012. She is a procrastinator and is just getting around to getting her 2012 tax return completed.

Reviews

Write a Review

Cost Accounting Questions & Answers

  Evaluate medical expense deduction

Dotty's insurance company reimbursed therefore $8,800 of these expenses. If Dotty's AGI is $47,200, evaluate her medical expense deduction.

  Financial statements for hilton company are offered below

financial statements for hilton company are offered below hilton company balance sheet 31st december 2012 assets

  Prepare journal entry to record the transaction of december

Prepare the journal entry to record the transaction of December 31, 2009, for the Hurly Co and assuming Hurly Co.'s fiscal year-end is December 31, prepare the journal entry for December 31, 2010.

  Problem caused by each control weakness

Identify the missing internal control characteristic in each situation and identify the possible problem caused by each control weakness.

  Prepare an income statement for 2010

Prepare an income statement for 2010 and prepare a statement of retained earnings for 2010

  What is the unit product cost for the month

Hadlock Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price

  Consider costs that were incurred during the current year

Evaluate each of the preceding and determine whether the cost is (a) a product cost or a period cost, (b) variable or fixed in terms of behavior, and (c) for the product costs only, whether the cost is properly classified as direct material, direc..

  Implement to control unallocated costs

what other potential measures will we implement to control those unallocated costs and regarding customer profitability profiles, what could be done when customers have unfavorable profiles?

  What are the u.s. tax consequences of hans u.s. activities

What are the U.S. tax consequences of Hans U.S. activities and compute Cholati s branch profi ts tax, and determine its branch interest withholding tax obligations. Assume that Cholati does not reside in a treaty country.

  Acme manufacturing manufactures and sells three products

acme manufacturing manufactures and sells three products. the following information pertains to acmes 2012 sales and

  Question1 trigen corp management can invest cash flows of

question1. trigen corp. management can invest cash flows of 213949 1405364 1108566 818400 1239644 and 1617848 in

  What is the npv if the discount rate is 15.30%

What is the NPV if the discount rate is 15.30% and Evaluate Capital's after-tax WACC

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