User Account

All Pages

Prepare an incremental analysis report for barnes company

Assignment Help Accounting Basics
Reference no: EM13524409

Barnes Company manufactured 6,000 units of a component part that is used in its product and incurred the following costs:

Direct materials $35,000
Direct labor 15,000
Variable manufacturing overhead 10,000
Fixed manufacturing overhead 20,000
$80,000

Another company has offered to sell the same component part to the company for $12.00 per unit. The fixed manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would not be reduced if the component part was purchased from the outside firm. If the component part is purchased from the outside firm, Barnes Company has the opportunity to use the factory equipment to produce another product which is estimated to have a contribution margin of $16,000.

Instructions

Prepare an incremental analysis report for Barnes Company which can serve as informational input into this make or buy decision.

Reference no: EM13524409

Questions Cloud

Compute the cost of goods transferred : From this information, compute the cost of goods transferred to the Finished Goods Inventory account, the cost remaining in the Work in Process Inventory account, and the total costs to be accounted for.
Prepare entries to record the receivables transactions : Prepare the entries to record the receivables transactions - calculate the net realizable value of accounts receivable at 12/31/10
Most valid predictor of performance : High-level degrees from non-accredited schools may be indicators of lesser accomplishment than lower-level degrees from accredited schools.
Compute the simple rate of return for the machine : Compute the payback period for the machine and compute the simple rate of return for the machine -
Prepare an incremental analysis report for barnes company : Prepare an incremental analysis report for Barnes Company which can serve as informational input into this make or buy decision.
Compute total-price and quantity variances for materials : Compute the total, price, and quantity variances for materials - Benjamin Company purchased
Record the purchase of the drill press : Record the purchase of the drill press and the depreciation expense for the first year under the straight-line and double-declining-balance methods in a financial statement - Compute the depreciation for each of the five years, assuming that the c..
Research suggests that biodata does not provide incremental : The proportion of organizations that conduct pre-hire background checks to determine if employees have criminal records or inaccurate reporting on résumés, has risen dramatically in recent years.
Wnat journal entries : The company pays $44,900 to tear down the old building and $66,374 to fill and level the lot. It also pays a total of $1,857,382 in construction costs"this amount consists of $1,747,100 for the new building and $110,282 for lighting and paving a p..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the improvement in sportsways total contribution

Bo Vonderweidt, the production manager for Sportway Corporation, had requested to have lunch with the company president. Vonderweidt wanted to put forward his suggestion to add a new product line

  The institute of management accountants statement of

1. the cash flow on total assets ratio is defined as cash flows from operations divided by average total assets.select

  Find amount material-handling costs allocated to one mirror

Under the costing system that allocates overhead on basis of direct-labor hours, the material-handling costs allocated to one mirror would be what amount?

  Amount of cash janice dress delivery

Determine the amount of cash Janice's Dress Delivery expects to collect from accounts receivable during January.

  Analyze the impact to cpas

Analyze the impact to CPAs who practice within a very litigious environment in the U.S. Suggest what you believe to be the most effective way for CPAs to protect themselves from liability.

  Problem on producing annual cash flows

An investment that costs $25,000 will produce annual cash flows of $5,000 for a period of 6 years. Further, the investment has an expected salvage value of $3,000. Given a desired rate of return of 12%, the investment will generate a (round your a..

  Compute the adjusted net income to be used as the numerator

charles austin of the controllers office of thompson corporation was given the assignment of determining the basic and

  What is the target net income

A company requires $1,020,000 in sales to meet its net income target. Its contribution margin is 30%, and fixed costs are $180,000. What is the target net income?

  Different measures for a balanced scorecard

Do you believe variance analysis is a good gauge for managers to keep controls over poor quality materials, excess material usage, excess labor usage, etc....? Also, why would different companies have different measures for a balanced scorecard?

  What was the account balance at the end of specific year

At the end of the sixth year, the account balance was transferred to a bank paying 10%, and annual deposits of $80,000 were made at the end of each year from the seventh through the tenth years. what was the account balance at the end of the tenth..

  Write down a mips program which will prompt the user for a

write a mips program which will prompt the user for a string of up to 128 bytes calculate the frequency of each

  The most popular way for international expansion is for a

the most popular way for international expansion is for a local firm to acquire foreign companies. one of the most

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