Factor Co. can produce a unit of product for the following costs: Direct material $ 8.70...
Factor Co. can produce a unit of product for the following
costs:
| Direct material | $ | 8.70 | |
| Direct labor | 24.70 | ||
| Overhead | 43.50 | ||
| Total costs per unit | $ | 76.90 | |
An outside supplier offers to provide Factor with all the units it
needs at $44.45 per unit. If Factor buys from the supplier, the
company will still incur 70% of its overhead. Factor should choose
to:
Multiple Choice
-
Buy since the relevant cost to make it is $63.85.
-
Make since the relevant cost to make it is $46.45.
-
Buy since the relevant cost to make it is $46.45.
-
Make since the relevant cost to make it is $33.40.
-
Buy since the relevant cost to make it is $33.40.
Homework Answers
Relevant cost to make = Direct Material + Direct labor + (Overhead * 30%)
= $8.70 + $24.70 + ($43.50 * 30%) = $46.45
Purchase cost from outside supplier = $44.45
-
Buy since the relevant cost to make it is $46.45.
Add Answer to:
Factor Co. can produce a unit of product for the following
costs:
Direct material
$
8.70...
1)- Factor Co. can produce a unit of product for the following costs: Direct material $...
1)- Factor Co. can produce a unit of product for the following costs: Direct material $ 8.70 Direct labor 24.70 Overhead 43.50 Total costs per unit $ 76.90 An outside supplier offers to provide Factor with all the units it needs at $44.45 per unit. If Factor buys from the supplier, the company will still incur 70% of its overhead. Factor should choose to: 2)- Maxim manufactures a cat food product called Green Health. Maxim currently has 10,000 bags of...
Epsilon Co. can produce a unit of product for the following costs: Direct material Direct labor...
Epsilon Co. can produce a unit of product for the following costs: Direct material Direct labor Overhead Total costs per unit $7.80 23.80 39.00 $70.60 30 An outside supplier offers to provide Epsilon with all the units it needs at $5900 per unit. If Epsilon buys from the supplier, the company will still incur 40% of its overhead. Epsilon should ch oose to: Multiple Choice Buy since the relevant cost to make it is $7060 Make since the relevant cost...
TB MC Qu. 10-50 Factor Co. can produce a unit of product... Factor Co. can produce a unit of product for the following c...
TB MC Qu. 10-50 Factor Co. can produce a unit of product... Factor Co. can produce a unit of product for the following costs: Direct material $ 7.10 Direct labor 23.10 Overhead 35.50 Total product cost per unit $ 65.70 An outside supplier offers to provide Factor with all the units it needs at $38.85 per unit. If Factor buys from the supplier, the company will still incur 70% of its overhead. Factor should choose to: Multiple Choice: a. Buy...
Epsilon Co. can produce a unit of product for the following costs Direct material Direct labor...
Epsilon Co. can produce a unit of product for the following costs Direct material Direct labor Overhead Total costs per unit $8.20 24.20 41.00 $73.40 An outside supplier offers to provide Epsilon with all the units it needs at $63.05 per unit If Epsien buys from the supplier,the company wll still incur 35% of its overhead. Epsilon should choose to. Multiple Choice Buy since the relevant cost to make it is $46.75 Make since the relevant cost to make it...
4. Alpha Co. can produce a unit of Beta for the following costs: Direct material .....
4. Alpha Co. can produce a unit of Beta for the following costs: Direct material .. Direct labor ........... Overhead .... Total costs per unit...... An outside supplier offers to provide Alpha with all the Beta units it needs at $60 per unit. If Alpha buys from the supplier, Alpha will still incur 40% of its overhead. Alpha should? Focus English (United States)
Holmes Company produces a product that can be either sold as is or processed further. Holmes...
Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $98,000 to produce 1,725 units that can be sold now for $71,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $265 per unit. If Holmes processes further, the units can be sold for $445 each. Compute the incremental income if Holmes processes further. Process Sell as is Further Incremental Amount Sales Additional processing costs...
The following standard costs pertain to a component part manufactured by Ashby Company: Direct Materials $2...
The following standard costs pertain to a component part manufactured by Ashby Company: Direct Materials $2 Direct Labour $5 Manufacturing Overhead $20 Standard Cost per Unit $27 The company can purchase the part from an outside supplier for $25 per unit. The manufacturing overhead is 60% fixed, and this fixed portion would not be affected by this decision. Assume that direct labour is an avoidable cost in this decision. What would be the relevant amount of the standard cost per...
Gilberto Company currently manufactures 88,000 units per year of one of its crucial parts. Variable costs are $3.10 per...
Gilberto Company currently manufactures 88,000 units per year of one of its crucial parts. Variable costs are $3.10 per unit, fixed costs related to making this part are $98,000 per year, and allocated fixed costs are $85,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $4.30 per unit guaranteed for a three-year period. Calculate the total incremental cost of...
Harvey Manufacturing incurs the following costs to make 5,000 units of a sub-assembly part included in its finishe...
Harvey Manufacturing incurs the following costs to make 5,000 units of a sub-assembly part included in its finished product. Direct materials $10,000 Direct labor 20,000 Variable overhead 25,000 Fixed overhead 50.000 Included in the $50,000 of fixed overhead is $3,000 spent to rent production equipment that could be avoided if Harvey did not manufacture this part. If Harvey buys the part from an outside supplier, it could use factory resources to make another product which is estimated to have a...
Gilberto Company currently manufactures 80.000 units per year of one of its crucial parts. Variable costs...
Gilberto Company currently manufactures 80.000 units per year of one of its crucial parts. Variable costs are $2.70 per unit, fixed costs related to making this part are $90,000 per year, and allocated fixed costs are $77,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $3.90 per unit guaranteed for a three-year period Calculate the total incremental cost of...
Epsilon Co. can produce a unit of product for the following costs: Direct material Direct labor Overhead Total costs per unit $7.80 23.80 39.00 $70.60 30 An outside supplier offers to provide Epsilon with all the units it needs at $5900 per unit. If Epsilon buys from the supplier, the company will still incur 40% of its overhead. Epsilon should ch oose to: Multiple Choice Buy since the relevant cost to make it is $7060 Make since the relevant cost...
Epsilon Co. can produce a unit of product for the following costs Direct material Direct labor Overhead Total costs per unit $8.20 24.20 41.00 $73.40 An outside supplier offers to provide Epsilon with all the units it needs at $63.05 per unit If Epsien buys from the supplier,the company wll still incur 35% of its overhead. Epsilon should choose to. Multiple Choice Buy since the relevant cost to make it is $46.75 Make since the relevant cost to make it...
4. Alpha Co. can produce a unit of Beta for the following costs: Direct material .. Direct labor ........... Overhead .... Total costs per unit...... An outside supplier offers to provide Alpha with all the Beta units it needs at $60 per unit. If Alpha buys from the supplier, Alpha will still incur 40% of its overhead. Alpha should? Focus English (United States)
Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $98,000 to produce 1,725 units that can be sold now for $71,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $265 per unit. If Holmes processes further, the units can be sold for $445 each. Compute the incremental income if Holmes processes further. Process Sell as is Further Incremental Amount Sales Additional processing costs...
Gilberto Company currently manufactures 88,000 units per year of one of its crucial parts. Variable costs are $3.10 per unit, fixed costs related to making this part are $98,000 per year, and allocated fixed costs are $85,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $4.30 per unit guaranteed for a three-year period. Calculate the total incremental cost of...
Harvey Manufacturing incurs the following costs to make 5,000 units of a sub-assembly part included in its finished product. Direct materials $10,000 Direct labor 20,000 Variable overhead 25,000 Fixed overhead 50.000 Included in the $50,000 of fixed overhead is $3,000 spent to rent production equipment that could be avoided if Harvey did not manufacture this part. If Harvey buys the part from an outside supplier, it could use factory resources to make another product which is estimated to have a...
Gilberto Company currently manufactures 80.000 units per year of one of its crucial parts. Variable costs are $2.70 per unit, fixed costs related to making this part are $90,000 per year, and allocated fixed costs are $77,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $3.90 per unit guaranteed for a three-year period Calculate the total incremental cost of...
Most questions answered within 3 hours.
-
I
have to separate 5 ions into 5 different test tubes
-> I CAN’T MAKE THE...
asked 1 minute ago -
Juanita took a business trip from Houston to New York. She
worked for 4 days, then...
asked 1 minute ago -
4. If we had
assumed the q for the calorimeter to be zero, would this have...
asked 9 minutes ago -
The following table reports real income per person for several
different economies in the years 1960...
asked 7 minutes ago -
Since the Great Recession, the trade deficit has been
decreasing
staying about the same
increasing
none...
asked 8 minutes ago -
A rigid tank contains 1.60 moles of an ideal gas. Determine the
number of moles of...
asked 11 minutes ago -
There are four different math books, six statistics and two
physics books which should be accommodated...
asked 28 minutes ago -
QUESTION 17
The Age Discrimination in Employment Act prohibits specific
employers from discriminating against persons who...
asked 28 minutes ago -
(Python) In the Unified Modeling Language, which symbol
indicates that objects of the Music class contain...
asked 31 minutes ago -
Question #2. An assest was purchased for
$100,000 on 1 January 20X5 and straight line depreciation...
asked 34 minutes ago -
You notice that the type of phone someone has and the computer
operating system they use...
asked 34 minutes ago -
You are analyzing samples under a microscope, and one sample
comes from what you suspect is...
asked 51 minutes ago