Which option should be selected and why

Assignment Help Cost Accounting
Reference no: EM132868569

Question - Omega DB is currently buying 50,000 motherboard from MBoard, Inc. at a price of P65 per board. Omega DB is considering making its own boards. The costs to make the board are as follows: Direct Materials P32 per unit, Direct labor P10 per unit, Variable Factory Overhead P16.00, Fixed Costs for the plant would increase by P75,000. Which option should be selected and why?

a. Buy- 275,000 more in profit

b. Make - 350,000 increase in profit

c. Buy - 75,000 more in profit

d. Make - 275,000 increase in profit

Reference no: EM132868569

Questions Cloud

Calculate the contribution margin ratio : The selling price per pair of speakers is $1,000. Calculate the contribution margin ratio, Break-even sales, Expected sales and margin of safety in dollars
Preferred stock to municipal bond : If corporate bonds offer 9% yields, what must municipals offer for the investor to prefer them to corporate bonds?
Problem - Journalizing these transaction : Problem - Journalizing these transaction: 20-Apr Performed six surgeries today, all on credit for $4,400 each
Prepare the appropriate journal entry to record income taxes : No temporary differences existed at the beginning of the year, and the tax rate is 25%. Prepare the appropriate journal entry to record income taxes in 2022
Which option should be selected and why : Variable Factory Overhead P16.00, Fixed Costs for the plant would increase by P75,000. Which option should be selected and why
Compute net income for the first year for Tri Fecta : Tri Fecta, a partnership, had revenues of $200,000 in its first year of operations. Compute net income for the first year for Tri Fecta
Allocate gain and loss for the year : Allocate gain and loss for the year 2 using a target allocation method. The asset was not depreciated and there was no other business activity in year 1 and 2
What is the effective borrowing cost on this loan : If the loan requires borrowers to pay 3.0 discount/origination points up-front, what is the effective borrowing cost on this loan
How difficult some issues can be to answer : How difficult some issues can be to answer, think about a similar experience you have had professionally - post a reply to your original post and state

Reviews

Write a Review

Cost Accounting Questions & Answers

  Cost accounting assignment

Evaluate Method of measuring costs associated with production, budgeting process, normal job-order costing system , master budget, cycle time.

  Prepare the journal entries

Prepare the journal entries to record the bond issue and interest expense.

  Advise as to the liability of all the parties

Write a report on given case study and Advise as to the liability of ALL the parties both under common law and the Corporations Law.

  Prepare revenues budget

Prepare Revenues budget and Production budget in units

  Effect of exchange rate changes on cash and cash

Effect of exchange rate changes on cash and cash

  Corporate governance

You are to reflect on how this case of China Sky relates to what the arguments for and against allowing audit firm partners and/or employees to join audit committees.

  Cost-benefit analysis

A cost-benefit analysis of electronic medical records in primary care

  Non-annual interest rates and annuities

Theory of Interest- Non-annual interest rates and annuities

  Job costing in service organizations

How is job costing in service organizations different from job costing in manufacturing environments?

  Accounting for bad debt expense

Accounting for bad debt expense

  Accounting and partnership problems

Accounting and Partnership problems

  Development of relevant cash flows

Development of relevant cash flows - Cost estimating and financial analysis

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