Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Fouch Company makes 30,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: Direct Materials $15.70 Direct Labor $17.50 Variable Manufacturing Overhead $4.50 Fixed Manufacturing Overhead $14.60 Unit Product Cost $52.30 An outside supplier has offered to sell the company all of these parts it needs for $51.90 a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $219,000 per year. If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However, $6.20 of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company's remaining products. Required: i. How much of the unit product cost of $52.30 is relevant in the decision of whether to make or buy the part? ii. What is the net total dollar advantage (disadvantage) of purchasing the part rather than making it? iii. What is the maximum amount the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all 30,000 units required each year?
matador inc. sells computer monitor screens. the direct labor dl rate includes wages benefits and payroll tax. direct
Prepare the journal entries to record the transaction on the books of Berry Corporation at December 31, 2011. (Assume that the effective interest method is used. Use the interest tables below and round to the nearest dollar.)
Because of the uncertainty for the future cash flows and the discount rate, we cannot complete the balance sheet if we do have the income statement first. (a) Please discuss for how the uncertainty is related to earnings quality. (b) Can the uncer..
consider the following information prepared based on a capacity of 100000 unitscategorycost per unitvariable
1 in their partnership agreement justin sarah and betsy agreed that justin should receive a salary allowance of 35000
Old Alabama Company purchased investments for $45,000 and plant assets for $127,000 during the current year, during which it also sold plant assets for $66,000, at a gain of $6,000. The company also purchased treasury stock for $78,000 and sold a ..
a company has 7000 obsolete toys carried in inventory at a manufacturing cost of 6 per unit. if the toys are reworked
a company that produces a single product had a net operating income of 84000 using variable costing and a net operating
in 2012 amirante corporation had pretax financial income of 233800 and taxable income of 193600. the difference is due
suppose rhm is expected to pay the total cash dividend of 5.60 next year and its dividends are expected to grow at the
Cendant Corporation's results for the year ended December 31, 2011, include the following material items: Cendant Corporation's income from continuing operations before income taxes for 2011 is:
danford trucking purchased a tractor trailer for 147000. danford uses the units-of-activity method for depreciating its
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd