Solution
Make | Buy | Net income Increase (Decrease) | |
Direct material | $ 1,040,000.00 | $ 1,040,000.00 | |
Direct labor | $ 832,000.00 | $ 832,000.00 | |
Variable Overheads | $ 124,800.00 | $ 124,800.00 | |
Fixed overhead | $ 603,200.00 | $ 198,200.00 | $ 405,000.00 |
Purchase price | $ 2,392,000.00 | $ (2,392,000.00) | |
Total relevant Cost | $ 2,600,000.00 | $ 2,590,200.00 | $ 9,800.00 |
.Alternate solution
Make | Buy | Net income Increase (Decrease) | |
Direct material | $ 1,040,000.00 | $ 1,040,000.00 | |
Direct labor | $ 832,000.00 | $ 832,000.00 | |
Variable Overheads | $ 124,800.00 | $ 124,800.00 | |
Fixed overhead | $ 405,000.00 | $ 405,000.00 | |
Purchase price | $ 2,392,000.00 | $ (2,392,000.00) | |
Total relevant Cost | $ 2,401,800.00 | $ 2,392,000.00 | $ 9,800.00 |
Requirement 2
The offer should be accepted.
The offer should be accepted due to additional benefit from outsourcing.
Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a...
Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 20,300 Tri-Robos is as follows Cost Direct materials ($49 per robot) 5994,700 832.300 Direct labor $41 per robot) Variable overhead (55 per robot) Allocated fored overhead (530 per robot) 101.500 500.000 Total $2.528_500 Jobs is approached by Tinh Inc, which offers to make Tri-Robo for...
Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 19,600 Tri-Robos is as follows. Cost $980,000 764,400 137,200 Allocated fixed overhead (31 per robot) 600,000 $2,481,600 Direct materials ($50 per robot) Direct labor ($39 per robot) Variable overhead ($7 per robot) Total Jobs is approached by Tienh Inc., which offers to make Tri-Robo for...
Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 19,200 Tri-Robos is as follows. Cost Direct materials ($51 per robot) $979,200 Direct labor ($38 per robot) 729,600 Variable overhead ($7 per robot) 134,400 Allocated fixed overhead ($31 per robot) 595,200 Total $2,438,400 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for...
Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 19,200 Tri-Robos is as follows. Cost Direct materials ($51 per robot) $979,200 Direct labor ($38 per robot) 729,600 Variable overhead ($7 per robot) 134,400 Allocated fixed overhead ($31 per robot) 595,200 Total $2,438,400 Jobs is approached by Tienh Inc., which offers to make Tri-Robo...
E7.6 (LO 3), E Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot can scan a home for fires and gas leaks and then transmit this information to a smartphone. The structure to manufacture 20,000 Tri-Robos is as follows. Direct materials ($50 per robot) Direct labor ($40 per robot) Variable overhead ($6 per robot) Allocated fixed overhead ($30 per robot) Total Cost $1,000,000 800,000 120,000 600,000 $2,520,000 Jobs is approached by Tienh Inc., which offers to make...
Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 19,300 Tri-Robos is as follows. Cost Direct materials ($51 per robot) $984,300 Direct labor ($38 per robot) 733,400 Variable overhead ($6 per robot) 115,800 Allocated fixed overhead ($31 per robot) 598,300 Total $2,431,800 Jobs is approached by Tienh Inc., which offers to make Tri-Robo...
Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 20,300 Tri-Robos is as follows. Cost Direct materials ($49 per robot) $994,700 Direct labor ($41 per robot) 832,300 Variable overhead ($5 per robot) 101,500 Allocated fixed overhead ($30 per robot) 600,000 Total $2,528,500 Jobs is approached by Tienh Inc., which offers to make Tri-Robo...
A1 A2 Help! Question 3 Blue, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 19,100 Tri-Robos is as follows. Cost Direct materials ($51 per robot) Direct labor ($41 per robot) Variable overhead ($5 per robot) Allocated fixed overhead ($31 per robot) $974,100 783,100 95,500 600,000 $2,452,700 Total Blue is approached by Tienh Inc., which...
CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 20-6 Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 20,000 Tri-Robos is as follows. Direct materials ($50 per robot) Direct labor ($40 per robot) Variable overhead ($6 per robot) Allocated fixed overhead ($30 per robot) Total Cost $1,000,000 800,000 120,000 600,000 $2,520,000 Jobs is approached...
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