Question

Vaughn Manufacturing produces 1000 units of a necessary component with the following costs: $41000 22000 Direct Materials Dir

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer: $80,000

Explanation

Maximum external price = Direct Materials + Direct Labor + Variable Overhead + Avoidable fixed overhead costs

= $ 41,000 + 22,000 + 11,000 + 6,000

= $ 80,000

Add a comment
Know the answer?
Add Answer to:
Vaughn Manufacturing produces 1000 units of a necessary component with the following costs: $41000 22000 Direct...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Waterway Industries produces 1000 units of a necessary component with the following costs: Direct Materials $42000...

    Waterway Industries produces 1000 units of a necessary component with the following costs: Direct Materials $42000 Direct Labor 23000 Variable Overhead 8000 Fixed Overhead 10000 Waterway Industries could avoid $6000 in fixed overhead costs if it acquires the components externally. If cost minimization is the major consideration and the company would prefer to buy the components, what is the maximum external price that Waterway Industries would accept to acquire the 1000 units externally? a. $75000 b. $79000 c. $77000 d....

  • Waterway Industries produces 1000 units of a necessary component with the following costs: Direct Materials $36000...

    Waterway Industries produces 1000 units of a necessary component with the following costs: Direct Materials $36000 Direct Labor 17000 Variable Overhead 11000 Fixed Overhead 10000 Waterway Industries could avoid $6000 in fixed overhead costs if it acquires the components externally. If cost minimization is the major consideration and the company would prefer to buy the components, what is the maximum external price that Waterway Industries would accept to acquire the 1000 units externally? a. $63000 b. $64000 c. $68000 d....

  • Bonita Industries produces 1000 units of a necessary component with the following costs: Direct Materials $33000...

    Bonita Industries produces 1000 units of a necessary component with the following costs: Direct Materials $33000 Direct Labor 14000 Variable Overhead 12000 Fixed Overhead 10000 Bonita Industries could avoid $6000 in fixed overhead costs if it acquires the components externally. If cost minimization is the major consideration and the company would prefer to buy the components, what is the maximum external price that Bonita Industries would accept to acquire the 1000 units externally?

  • Crane Company produces 1000 units of a necessary component with the following costs: Direct Materials $24000...

    Crane Company produces 1000 units of a necessary component with the following costs: Direct Materials $24000 Direct Labor 5000 Variable Overhead 7000 Fixed Overhead 10000 Crane Company could avoid $6000 in fixed overhead costs if it acquires the components externally. If cost minimization is the major consideration and the company would prefer to buy the components, what is the maximum external price that Crane Company would accept to acquire the 1000 units externally? $40000 $42000 $36000 $39000

  • Bramble Corp. produces 1000 units of a necessary component with the following costs: Direct Materials $28000...

    Bramble Corp. produces 1000 units of a necessary component with the following costs: Direct Materials $28000 Direct Labor 9000 Variable Overhead 12000 Fixed Overhead 10000 Bramble Corp. could avoid $6000 in fixed overhead costs if it acquires the components externally. If cost minimization is the major consideration and the company would prefer to buy the components, what is the maximum external price that Bramble Corp. would accept to acquire the 1000 units externally? $47000 $55000 $49000 $53000

  • Crane Company produces 1000 units of a necessary component with the following costs: $43000 24000 Direct...

    Crane Company produces 1000 units of a necessary component with the following costs: $43000 24000 Direct Materials Direct Labor Variable Overhead Fixed Overhead 12000 10000 Crane Company could avoid $6000 in fixed overhead costs if it acquires the components externally. If cost minimization is the major consideration and the company would prefer to buy the components, what is the maximum external price that Crane Company would accept to acquire the 1000 units externally? $77000 $83000 $79000 $85000

  • Vaughn Manufacturing can produce 100 units of a component part with the following costs: Direct Materials...

    Vaughn Manufacturing can produce 100 units of a component part with the following costs: Direct Materials $14000 Direct Labor 5500 Variable Overhead 9000 Fixed Overhead 11000 If Vaughn Manufacturing can purchase the component part externally for $35000 and only $4000 of the fixed costs can be avoided, what is the correct make- or-buy decision? Make and save $500 Buy and save $500 OMake and save $2500 Buy and save $6500 Sunland Music produces 60000 CDs on which to record music....

  • Waterway's Shop can make 1000 units of a necessary component with the following costs: Direct Materials...

    Waterway's Shop can make 1000 units of a necessary component with the following costs: Direct Materials $40000 Direct Labor 6000 Variable Overhead 3000 Fixed Overhead The company can purchase the 1000 units externally for $55000. The unavoidable fixed costs are $2000 if the units are purchased externally. An analysis shows that at this external price, the company is indifferent between making or buying the part. What are the fixed overhead costs of making the component? $6000 $8000 $4000 Cannot be...

  • Question 9 Crane Music produces 59000 blank CDs on which to record music. The CDs have...

    Question 9 Crane Music produces 59000 blank CDs on which to record music. The CDs have the following costs: Direct Materials Direct Labour Variable Overhead Fixed Overhead $10000 14000 2500 6500 Crane could avoid $3500 in fixed overhead costs if it acquires the CDs externally. If cost minimization is the major consideration and the company would prefer to buy the 59000 units externally, what is the maximum external price that Crane would expect to pay for the units? $29500 O...

  • Sheridan's Manufacturing Company can make 100 units of a necessary component part with the following costs:...

    Sheridan's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $112000 17000 39000 30000 If Sheridan's Manufacturing Company can purchase the component externally for $170000 and only $6000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Make and save $11000 Make and save $4000 Buy and save $4000 Buy and save $11000

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT