Solution 1:
Recher Corporation | ||
Make | Buy | |
Direct Material | $46,800 | $0 |
Direct Labor | $25,740 | $0 |
Variable Overhead | $50,700 | $0 |
Supervisor's salary | $18,720 | $0 |
Depreciation of special equipment | $15,600 | $15,600 |
Allocated General Overhead | $8,580 | $3,880 |
Outside purchase price | $0 | $1,63,800 |
Opportunity Cost (Additional Segment Margin) | $14,300 | $0 |
Total Cost | $1,80,440 | $1,83,280 |
Solution 2:
The total cost of make alternative is lower by ($183280 - $180440 =) $2840. Therefore the company should make the part.
TB Problem Qu. 12-179 Recher Corporation uses ... Recher Corporation uses part Q89 in one of...
TB Problem Qu. 12-179 Recher Corporation uses ... Recher Corporation uses part 089 in one of its products. The company's Accounting Department reports the following costs of producing the 6,200 units of the part that are needed every year. Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $ 7.60 $ 4.20 $ 8.30 $ 3.20 $ 2.70 $ 1.40 An outside supplier has offered to make the part and sell it...
Recher Corporation uses part
Q89 in one of its products. The company's Accounting Department
reports the following costs of producing the 7,400 units of the
part that are needed every year. Per Unit Direct materials $ 8.20
Direct labor $ 4.60 Variable overhead $ 9.10 Supervisor's salary $
3.50 Depreciation of special equipment $ 3.00 Allocated general
overhead $ 1.60 An outside supplier has offered to make the part
and sell it to the company for $29.00 each. If this...
TB Problem Qu. 12-179 Recher Corporation uses ... Recher Corporation uses part 089 in one of its products. The company's Accounting Department reports the following costs of producing the 8,300 units of the part that are needed every year. Direct materials Direct labor Variable overhead Supervisor salary Depreciation of special equipment Allocated general overhead Per Unit $7.10 $4.00 $7.90 $3.00 $2.60 $1.40 An outside supplier has offered to make the part and sell it to the company for $25.00 each....
Recher Corporation uses part Q89 in one of its products. The
company's Accounting Department reports the following costs of
producing the 8,900 units of the part that are needed every
year.
Per Unit
Direct materials
$
8.20
Direct labor
$
4.60
Variable overhead
$
9.10
Supervisor's salary
$
3.40
Depreciation of special equipment
$
2.90
Allocated general overhead
$
1.60
An outside supplier has offered to make the part and sell it to
the company for $28.00 each. If this...
Recher Corporation uses part Q89 in one of its products. The company's Accounting Department reports the following costs of producing the 9,500 units of the part that are needed every year. Per Unit Direct materials $ 6.30 Direct labor $ 3.50 Variable overhead $ 6.90 Supervisor's salary $ 2.60 Depreciation of special equipment $ 2.20 Allocated general overhead $ 1.20 An outside supplier has offered to make the part and sell it to the company for $23.00 each. If this...
please make sure the numbers are right
Check Recher Corporation uses part Q89 in one of its products. The company's Accounting Department reports the following costs of producing the 9100 units of the part that are needed every year Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead $9.80 5.0e 9.99 $ 3.88 3.20 $ 1.70 An outside supplier has offered to make the part and sell it to the company for $30.00 each....
TB Problem Qu. 12-182 Part U67 is used in one of Broce Corporation's ... Part U67 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the 15,900 units of the part that are needed every year. Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $ 2.80 $ 3.80 $ 6.60 $ 7.10 $ 8.20 $ 5.30 An outside supplier has offered to...
TB Problem Qu. 12-182 Part 467 is used in one of Broce Corporation's ... Part 467 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the 14,900 units of the part that are needed every year. Per Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Unit $ 1.80 $ 2.80 $ 5.60 $ 6.10 $ 7.20 $ 4.30 An outside supplier has offered to...
TB Problem Qu. 12-182 Part U67 is used in one of Broce Corporation's ... Part U67 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the 14,900 units of the part that are needed every year. Per Unit Direct materials $ 1.80 Direct labor $ 2.80 Variable overhead $ 5.60 Supervisor's salary $ 6.10 Depreciation of special equipment $ 7.20 Allocated general overhead $ 4.30 An outside supplier has offered to...
Part 467 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the 16,000 units of the part that are needed every year. Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $ 2.90 $ 3.90 $ 6.70 $ 7.20 $ 8.30 $ 5.40 An outside supplier has offered to make the part and sell it to the company for $28.00 each. If this...