Make Carrying Case (Alternative 1) | Buy Carrying Case (Alternative 2) | Net Income increase (decrease) | |
Sales Price | 0 | 0 | 0 |
Costs: | |||
Purchase price | 0 | $ 59 | $ -59 |
Direct material per unit | $ 24 | 0 | $ 24 |
Direct labor labor per unit | $ 20 | 0 | $ 20 |
Variable factory overhead per unit | $ 2.8 | 0 | $ 2.8 |
Fixed factory overhead per unit | $ 5.8 | $ 5.8 | 0 |
Income / (loss) | $ -52.6 | $ -64.8 | $ -12.2 |
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Make-or-Buy Decision Fremont Computer Company has been purchasing carrying cases for its portable computers at a...
Make-or-Buy Decision Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $59 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 43% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $24 20 Direct labor Factory overhead (43% of direct labor) 8.6 Total cost per unit $52.6 If Fremont Computer...
Make-or-Buy Decision Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $58 per unit. The company which is currently operating below full capacity, charges factory overhead to production at the rate of 44% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $27 Direct labor 18 Factory overhead (44% of direct labor) 7.92 Total cost per un $52.92 If Fremont Computer...
Make-or-Buy Decision Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $56 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 37% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $30 Direct labor 20 Factory overhead (37% of direct labor) 7.4 Total cost per unit If Fremont Computer Company...
Make-or-Buy Decision Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $55 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 37% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $24 Direct labor 21 Factory overhead (37% of direct labor) 7.77 Total cost per unit $52.77 If Fremont Computer...
Make-or-Buy Decision Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $60 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 41% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $28 Direct labor 19 Factory overhead (41% of direct labor) 7.79 Total cost per unit $54.79 If Fremont Computer...
Make-or-Buy Decision Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $60 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 42% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $28 Direct labor 19 Factory overhead (42% of direct labor) 7.98 Total cost per unit $54.98 If Fremont Computer...
Make-or-Buy Decision Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $62 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 42% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $25 Direct labor 17 7.14 Factory overhead (42% of direct labor) $49.14 Total cost per unit If Fremont Computer...
Make-or-Buy Decision Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $58 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 44% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $27 Direct labor 18 Factory overhead (44% of direct labor) 7.92 Total cost per unit $52.92 If Fremont Computer...
Make-or-Buy Decision Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $40 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 25% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Direct materials Direct labor Factory overhead (25% of direct labor) Total cost per unit If Fremont Computer Company manufactures the carrying...
Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $57 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 43% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $28 Direct labor 22 Factory overhead (43% of direct labor) 9.46 Total cost per unit $59.46 If Fremont Computer Company manufactures...