Murray Corp. currently makes 5,850 subcomponents a year in one of its factories. The unit costs...
Murray Corp. currently makes 5,850 subcomponents a year in one of its factories. The unit costs to produce are:
|
Description |
Per unit |
|
Direct materials |
$7 |
|
Direct labor |
2 |
|
Variable manufacturing overhead |
1 |
|
Fixed manufacturing overhead |
2 |
An outside supplier has offered to provide Murray Corp. with the 5,850 subcomponents at a $15 per unit price. Fixed overhead is not avoidable. What is the maximum price Murray Corp. should pay the outside supplier?
Homework Answers
Maximum price Murray Corp should pay
= Relevant manufacturing cost of making subcomponents
= Direct Materials 7 + Direct Labor 2 + Vmoh 1
= 10
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i think these are the answers but im not 100% sure. therefore please write an explanantion...
i think these are the answers but im not 100% sure. therefore
please write an explanantion on what the correct answer is:)
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