Marigold Corp. manufactures widgets. Bowden Company has approached Marigold with a proposal to sell the company...
Marigold Corp. manufactures widgets. Bowden Company has
approached Marigold with a proposal to sell the company widgets at
a price of $62320 for 100000 units. Marigold is currently making
these components in its own factory. The following costs are
associated with this part of the process when 100000 units are
produced:
| Direct material | $ 23560 |
| Direct labor | 22040 |
| Manufacturing overhead | 30400 |
| Total |
$76000 |
The manufacturing overhead consists of $12160 of costs that will be
eliminated if the components are no longer produced by Marigold.
From Marigold’s point of view, how much is the incremental cost or
savings if the widgets are bought instead of made?
$4560 incremental cost
$1520 incremental savings
$13680 incremental cost
$13680 incremental savings
Please try and explain the calculations!
thankssss
Homework Answers
Answer: $ 4,560 Incremental cost
Cost to Make the 100,000 Units = 76,000
Cost incurred to Buying the Units = Price + Unavoidable MOH = 62320+(30400-12,160) = 80,560
Loss on Bought the units = 80,560- 76,000 = 4,560 Incremental Cost
Add Answer to:
Marigold Corp. manufactures widgets. Bowden Company has
approached Marigold with a proposal to sell the company...
Sheffield Corp. manufactures widgets. Bowden Company has approached Sheffield with a proposal to sell the company...
Sheffield Corp. manufactures widgets. Bowden Company has approached Sheffield with a proposal to sell the company widgets at a price of $103320 for 100000 units. Sheffield is currently making these components in its own factory. The following costs are associated with this part of the process when 100000 units are produced: $39060 36540 Direct material Direct labor Manufacturing overhead Total 50400 $126000 The manufacturing overhead consists of $20160 of costs that will be eliminated if the components are no longer...
Crane Company manufactures widgets. Bowden Company has approached Crane with a proposal to sell the company...
Crane Company manufactures widgets. Bowden Company has approached Crane with a proposal to sell the company widgets at a price of $65600 for 100000 units. Crane is currently making these components in its own factory. The following costs are associated with this part of the process when 100000 units are produced: $24800 23200 Direct material Direct labor Manufacturing overhead Total 32000 $80000 The manufacturing overhead consists of $12800 of costs that will be eliminated if the components are no longer...
Sheridan Company manufactures widgets. Bowden Company has approached Sheridan with a proposal to sell the company...
Sheridan Company manufactures widgets. Bowden Company has approached Sheridan with a proposal to sell the company widgets at a price of $63960 for 100000 units. Sheridan is currently making these components in its own factory. The following costs are associated with this part of the process when 100000 units are produced: Direct material $ 24180 Direct labor 22620 Manufacturing overhead 31200 Total $78000 The manufacturing overhead consists of $12480 of costs that will be eliminated if the components are no...
Concord Corporation manufactures widgets. Bowden Company has approached Concord with a proposal to sell the company...
Concord Corporation manufactures widgets. Bowden Company has approached Concord with a proposal to sell the company widgets at a price of $78720 for 100000 units. Concord is currently making these components in its own factory. The following costs are associated with this part of the process when 100000 units are produced: Direct material $ 29760 Direct labor 27840 Manufacturing overhead 38400 Total $96000 The manufacturing overhead consists of $15360 of costs that will be eliminated if the components are no...
Crane Company manufactures widgets. Bowden Company has approached Crane with a proposal to sell the company...
Crane Company manufactures widgets. Bowden Company has approached Crane with a proposal to sell the company widgets at a price of $65600 for 100000 units. Crane is currently making these components in its own factory. The following costs are associated with this part of the process when 100000 units are produced: $ 24800 23200 Direct material Direct labor Manufacturing overhead Total 32000 $80000 The manufacturing overhead consists of $12800 of costs that will be eliminated if the components are no...
17. Chapman Company manufactures widgets. Embree Company has approached Chapman with a proposal to sell the...
17. Chapman Company manufactures widgets. Embree Company has approached Chapman with a proposal to sell the company widgets at a price of $125,000 for 100,000 units. Chapman is currently making these components in its own factory. The following costs are associated with this part of the process when 100,000 units are produced: Direct materials $ 46,500 Direct labor 43,500 Manufacturing overhead 60.000 Total $150.000 The manufacturing overhead consists of $24,000 of costs that will be eliminated if the components are...
20. Chapman Company manufactures widgets Embrse Compare with a proposal to sell the company widgets et a price $179 Cha...
20. Chapman Company manufactures widgets Embrse Compare with a proposal to sell the company widgets et a price $179 Chapman is currently making the one in G are associated with this part of the process when 100.000 Direct materials Direct labor Manufacturing overhead r 100 e company has approach Vents in its own factory. The following 100.000 units are product $ 46,500 43,500 60.000 us Total no longer produced by Chaprnan. From Chapman's point o 24,000 of costs that will...
ত S Able Company's unit manufacturing cost is: Variable Costs Fixed Costs $50 25 A special...
ত S Able Company's unit manufacturing cost is: Variable Costs Fixed Costs $50 25 A special order for 2,000 units has been received from a foreign company. The unit price requested is $55. The normal unit price is $80. If the order is accepted, unit variable costs will increase by $2 for additional freight costs. If the order is accepted, incremental profit (loss) will be a. $(46,000). b. $6,000. c. $(40,000). d. $10,000. Chapman Company manufactures widgets. Embree Company has...
Sheffield Corp. sells MP3 players for $60 each. Variable costs are $50 per unit, and fixed...
Sheffield Corp. sells MP3 players for $60 each. Variable costs are $50 per unit, and fixed costs total $120000. How many MP3 players must Sheffield sell to earn net income of $280000? 40000. 5600. O 12000 4000. Crane Company manufactures widgets. Bowden Company has approached Crane with a proposal to sell the company widgets at a price of $6500 for 100000 units. Crane is currently making these components in its own factory. The following costs are associated with this part...
Safe T Products manufactures electronic switches. Safe T Products is currently makin these components in its...
Safe T Products manufactures electronic switches. Safe T Products is currently makin these components in its own factory. The following costs are associated with this part of the process when 100,000 units are produced: Direct material $ 31,000 Direct labor 29,000 Manufacturing overhead 40,000 Total $100,000 Safe T Products can purchase the electronic switches from Specialty Products at a price of $82,000 for 100,000 units. The manufacturing overhead consists of $16,000 of costs that will be eliminated if the components...
Sheffield Corp. manufactures widgets. Bowden Company has approached Sheffield with a proposal to sell the company widgets at a price of $103320 for 100000 units. Sheffield is currently making these components in its own factory. The following costs are associated with this part of the process when 100000 units are produced: $39060 36540 Direct material Direct labor Manufacturing overhead Total 50400 $126000 The manufacturing overhead consists of $20160 of costs that will be eliminated if the components are no longer...
Crane Company manufactures widgets. Bowden Company has approached Crane with a proposal to sell the company widgets at a price of $65600 for 100000 units. Crane is currently making these components in its own factory. The following costs are associated with this part of the process when 100000 units are produced: $24800 23200 Direct material Direct labor Manufacturing overhead Total 32000 $80000 The manufacturing overhead consists of $12800 of costs that will be eliminated if the components are no longer...
Crane Company manufactures widgets. Bowden Company has approached Crane with a proposal to sell the company widgets at a price of $65600 for 100000 units. Crane is currently making these components in its own factory. The following costs are associated with this part of the process when 100000 units are produced: $ 24800 23200 Direct material Direct labor Manufacturing overhead Total 32000 $80000 The manufacturing overhead consists of $12800 of costs that will be eliminated if the components are no...
17. Chapman Company manufactures widgets. Embree Company has approached Chapman with a proposal to sell the company widgets at a price of $125,000 for 100,000 units. Chapman is currently making these components in its own factory. The following costs are associated with this part of the process when 100,000 units are produced: Direct materials $ 46,500 Direct labor 43,500 Manufacturing overhead 60.000 Total $150.000 The manufacturing overhead consists of $24,000 of costs that will be eliminated if the components are...
20. Chapman Company manufactures widgets Embrse Compare with a proposal to sell the company widgets et a price $179 Chapman is currently making the one in G are associated with this part of the process when 100.000 Direct materials Direct labor Manufacturing overhead r 100 e company has approach Vents in its own factory. The following 100.000 units are product $ 46,500 43,500 60.000 us Total no longer produced by Chaprnan. From Chapman's point o 24,000 of costs that will...
ত S Able Company's unit manufacturing cost is: Variable Costs Fixed Costs $50 25 A special order for 2,000 units has been received from a foreign company. The unit price requested is $55. The normal unit price is $80. If the order is accepted, unit variable costs will increase by $2 for additional freight costs. If the order is accepted, incremental profit (loss) will be a. $(46,000). b. $6,000. c. $(40,000). d. $10,000. Chapman Company manufactures widgets. Embree Company has...
Sheffield Corp. sells MP3 players for $60 each. Variable costs are $50 per unit, and fixed costs total $120000. How many MP3 players must Sheffield sell to earn net income of $280000? 40000. 5600. O 12000 4000. Crane Company manufactures widgets. Bowden Company has approached Crane with a proposal to sell the company widgets at a price of $6500 for 100000 units. Crane is currently making these components in its own factory. The following costs are associated with this part...
Safe T Products manufactures electronic switches. Safe T Products is currently makin these components in its own factory. The following costs are associated with this part of the process when 100,000 units are produced: Direct material $ 31,000 Direct labor 29,000 Manufacturing overhead 40,000 Total $100,000 Safe T Products can purchase the electronic switches from Specialty Products at a price of $82,000 for 100,000 units. The manufacturing overhead consists of $16,000 of costs that will be eliminated if the components...
Most questions answered within 3 hours.
-
Question 1
At the end of Year 6,
South Co.'s tax department estimates that they will...
asked 5 minutes ago -
Need help in drawing out a map pathway of pentose phosphate
pathway and pyruvate dehydrogenase/citric acid...
asked 3 minutes ago -
Use standard enthalpies of formation to determine
ΔHorxn for:
1. 3NO2(g) + H2O(l) → 2HNO3(aq)
+...
asked 9 minutes ago -
Abigail Adams was hired as an associate professor of economics
at Heartland University. She was the...
asked 12 minutes ago -
consider the overall reaction: AB(g) + CB(g) ⟶ A(g) + CB2(g)
A proposed mechanism for this...
asked 19 minutes ago -
In fruit flies, assume bright red eyes (r) and curly wing (w)
are encoded by two...
asked 34 minutes ago -
Consider the compounds represented by the following names:
Compound A: 2,3-dimethylpentane Compound B: 3,4-dimethyl-3-pentene
Compound C:...
asked 39 minutes ago -
C3H8 + 5O2 produces 3CO2 + 4
H2O
How many grams of CO2 are
produced by...
asked 39 minutes ago -
Select a target behavior from your list of potential target
behaviors. State your target behavior in...
asked 53 minutes ago -
Guns make a unique marking on the bullets they fire and their
shell casings. These markings...
asked 56 minutes ago -
Bourque Enterprises is considering a new project. The project
will generate sales of $1.5 million, $2.2...
asked 1 hour ago -
data structures c++
please implement the QuickSort algorithm as a C++ function. Use
it to sort...
asked 1 hour ago