Prepare an incremental analysis - barney company

Assignment Help Accounting Basics
Reference no: EM13529352

Barney Company must decide whether to make or buy some of its components.

The costs of producing 60,000 switches for its generators are as follows.
Direct materials $30,000 Variable overhead $45,000
Direct labor $42,000 Fixed overhead $60,000

Instead of making the switches at an average cost of $2.95 ($177,000 A? 60,000), the company has an opportunity to buy the switches at $2.75 per unit. If the company purchases the switches, all the variable costs and one-third of the fixed costs will be eliminated.

(a) Prepare an incremental analysis showing whether the company should make or buy the switches.

(b) Would your answer be different if the released productive capacity will generate additional income of $30,000?

Reference no: EM13529352

Questions Cloud

Explain what is the empirical formula of the compund : A compound was analyzed and found to be composed of 75% cardbon and 25% hydrogen. What is the Empirical formula of this compund
Compute the payback period for the new hoist : Compute the payback period for the new hoist and compute the annual rate of return for the new hoist. (Round to one decimal.)
Depends upon lactic acid oralcoholic fermentation : What are some foods whose production depends upon lactic acid oralcoholic fermentation? determine which organisms areresponsible, which pathway they are using, and (specifically) what product of fermentation is responsible for the effect on the fo..
Explain chemical equation for the formation of sulfuric acid : This liquid is then diluted with water to form liquid .sulfuric acid, H2SO4, as the only product in the reaction. Write a balanced chemical equation for the formation of sulfuric acid from H2S2O7 when diluted with water.
Prepare an incremental analysis - barney company : Prepare an incremental analysis whether the company should make or buy the switches.
Created by dr florence neymotin : Created by Dr. Florence Neymotin,    Which three states had the largest (positive) change in average weekly earnings over this time period (remember to use the correct units in your answer)?
What is the committed step of glycolysis : What is the “committed” step of glycolysis? Why is itcalled this? Is this a regulated step?
How much output should the firm produce to maximize profit : How much output should the firm produce to maximize profit
Explain why are there no 1p orbitals : Why do we discuss electrons in terms of the probability of finding them in an orbital instead of in terms of absolute locations. Why are there no 1p orbitals

Reviews

Write a Review

Accounting Basics Questions & Answers

  Hue company employs the perpetual inventory system and

hue company uses the perpetual inventory system and allows customers to use two credit cards in charging purchases.

  Determining receipt of the cash and notes

How will Wren Corporation be taxed on the distribution? How will Adam be taxed on his receipt of the cash and notes?

  Proposals using zero-base budgeting

Which of the following is true when ranking proposals using zero-base budgeting?

  How much of the amount will be interest

How much of this amount will be interest? If you decidet pay off the loan at the end of the first year, how much will youowe the dealer?

  Prepare statement of affairs as on december

Mr. Qamar keeps his books under single entry system; his position on 31 December 2002. You are required to prepare Statement of affairs as on 31st December 2002.

  The fundamental accounting equation is the reflection of

the fundamental accounting equation is a reflection of themoney measurement conceptconservatism conceptdual-aspect

  Resources in the center for writing excellence

Other than WritePointSM, what three resources in the Center for Writing Excellence do you find useful? Describe these resources, and explain how you might use them in future courses. Consider looking at the Service, Writing Resources, and Useful L..

  Compute the mix and quantity variances

Renee's Rings manufactures college rings. Two models are produced: The Spirit model with a budgeted price of $660 and a standard variable cost of $360.

  Describe the types and payment patterns of notes provide

explain the types and payment patterns of notes. provide examples of current types of

  A self-employed person deposits 3000 annually in a

a self-employed person deposits 3000 annually in a retirement account called a keogh account that earns 8 percent.a.

  Who are the users of financial statements how would users

who are the users of financial statements? how would users differ in their views of the financial statements? why would

  Make a summary of performance tests and analysis of target

prepare a summary of performance tests and analysis of the target acquisition. kohlsperform the following tests to help

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