(a1) | ||
Make | Buy | |
Direct materials ( 12 * 40620 ) | 487440 | |
Direct labor ( 6 * 40620 ) | 243720 | |
Variable manufacturing overhead ( 3 * 40620 ) | 121860 | |
Direct fixed manufacturing overhead (Salaries) ( 10 * 30% * 40620 ) | 121860 | |
Purchase cost ( 35 * 40620 ) | 1421700 | |
Total relevant cost | 974880 | 1421700 |
(b1) | |
New lights | |
Sales ( 89780 * 11 ) | 987580 |
(-) Variable cost ( 89780 * 8 ) | 718240 |
Contribution margin | 269340 |
147480 |
Total relevant cost to make = Direct materials + Direct labor + Variable manufacturing overhead = 487440 + 243720 + 121860 | 853020 |
Net relevant cost if they accept Clifton's offer = Purchase cost - Contribution margin from the new lights = 1421700 - 269340 | 1152360 |
Problem 8-24 (Part Level Submission) Oriole Water Co. is a leading producer of greenhouse irrigation systems....
Problem 8-24 (Part Level Submission) Wildhorse Water Co. is a leading producer of greenhouse irrigation systems. Currently, the company manufactures the timer unit used in each of its systems. Based on an annual production of 40,960 timers, the company has calculated the following unit costs. Direct fixed costs include supervisory and clerical salaries and equipment depreciation. Direct materials $12 Direct labor 7 Variable manufacturing overhead 4 Direct fixed manufacturing overhead 9 (30% salaries, 70% depreciation) Allocated fixed manufacturing overhead 5...
Problem 8-24 Wright Water Co. is a leading producer of greenhouse irrigation systems. Currently, the company manufactures the timer unit used in each of its systems. Based on an annual production of 50,000 timers, the company has calculated the following unit costs. Direct fixed costs include supervisory and clerical salaries and equipment depreciation. $13 Direct materials Direct labor Variable manufacturing overhead Direct fixed manufacturing overhead Allocated fixed manufacturing overhead Total unit cost 4 7 (40% salaries, 60% depreciation) 8 Clifton...
thank you! LALL IU HAL BRIR PRIRTEA VERION BACK Problem 8-24 (Part Level Submission) Wildhorse Water Co. is a leading producer of greenhouse irrigation systems. Currently, the company manufactures the timer unit used in each of its systems. Based on an anenual production of 40,960 timers, the company has calculated the following unit costs. Direct fixed costs include supervisory and clerical salaries and equipment depreciation Direct materials $12 Direct labor 7 Variable manufacturing overhead 4 Direct fixed manufacturing overhead 9...
Exercise 8-10 Every year Swifty Industries manufactures 8,600 units of part 231 for use in its production cycle. The per unit costs of part 231 are as follows: $ 4 10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total 10 Flintrock, Inc., has offered to sell 8,600 units of part 231 to Swifty for $33 per unit. If Swifty accepts Flintrock's offer, its freed-up facilities could be used to earn $14,400 in contribution margin by manufacturing part...
Exercise 8-10 Every year Riverbed Industries manufactures 7,300 units of part 231 for use in its production cycle. The per unit costs of part 231 are as follows: $ 5 11 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 10 Total $32 Flintrock, Inc., has offered to sell 7,300 units of part 231 to Riverbed for $34 per unit. If Riverbed accepts Flintrock's offer, its freed-up facilities could be used to earn $10,500 in contribution margin by manufacturing...
11723119, 5:01 PM Exercise 8-10 Every year Pronghorn Industries manufactures 5,800 units of part 231 for use in its production cycle. The per unit costs of part 231 are as follows: $ 5 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total 6 10 Flintrock, Inc., has offered to sell 5.800 units of part 231 to Pronghorn for $32 per unit. If Pronghorn accepts Flintrock's offer, Its freed-up facilities could be used to earn $13,200 in contribution margin...
Royal Company manufactures 10,000 units of Part R-3 each year. At this level of activity, the cost per unit for Part R-3 follows: Direct materials $14.40 Direct labour 21.00 Variable manufacturing overhead 9.60 Fixed manufacturing overhead 25.00 Total cost per part $70.00 An outside supplier has offered to sell 10,000 units of Part R-3 each year to Royal Company for $54 per part. If Royal Company accepts this offer, the facilities now being used to manufacture Part R-3 could be...
Please read carefully, I've uploaded this twice and gotten the wrong answer both times. Thank you Exercise 8-10 Every year Bramble Industries manufactures 9,900 units of part 231 for use in its production cycle. The per unit costs of part 231 are as follows: $ 5 12 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total 10 Flintrock, Inc., has offered to sell 9,900 units of part 231 to Bramble for $33 per unit. If Bramble accepts Flintrock's...
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $34 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally: Per Unit $ 9 11...
2. value: 1.25 points Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $47 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally: 15,100...