Financial advantage of making starter is $69,000 | |||
Dear Student | |||
Thank you for using homeworklib | |||
Please find below the answer | |||
Statement showing Computations | |||
Particulars | Making | Buying | Difference |
Purchase cost = 69000 * 11.20 | 772,800.00 | (772,800.00) | |
Direct Materials = 69000*5 | 345,000.00 | 345,000.00 | |
Direct labour = 69000*3.20 | 220,800.00 | 220,800.00 | |
Variable manufacturing overhead = 69000*.50 | 34,500.00 | 34,500.00 | |
Supervisor salary | 103,500.00 | 103,500.00 | |
Total relevant cost | 703,800.00 | 772,800.00 | (69,000.00) |
Futura Company purchases the 69,000 starters that it installs in its standard line of farm tractors...
Futura Company purchases the 69.000 starters that it installs in its standard line of farm tractors from a supplier for the price of $11.20 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $11.90 as shown below: Total Direct materials Direct...
Futura Company purchases the 80,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $11.20 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company’s chief engineer is opposed to making the starters because the production cost per unit is $12.00 as shown below: Per Unit Total Direct...
Futura Company purchases the 61,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $10.50 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company’s chief engineer is opposed to making the starters because the production cost per unit is $11.00 as shown below: Per Unit Total Direct...
Futura Company purchases the 72,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $11.90 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company’s chief engineer is opposed to making the starters because the production cost per unit is $12.10 as shown below: Per Unit Total Direct...
Futura Company purchases the 64,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $12.20 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $12.90 as shown below: Total Direct materials Direct...
Futura Company purchases the 78,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $13.20 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $13.50 as shown below: Total Direct materials Direct...
Futura Company purchases the 65,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $12.30 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $12.30 as shown below Per Unit $ 6.00...
Futura Company purchases the 65,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $10.80 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company’s chief engineer is opposed to making the starters because the production cost per unit is $11.30 as shown below: Per Unit Total Direct...
Futura Company purchases the 71,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $9.60 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company’s chief engineer is opposed to making the starters because the production cost per unit is $10.90 as shown below: Per Unit Total Direct...
Futura Company purchases the 67,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $12.00 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $12.50 as shown below: Total Direct materials Direct...