Cruise Company produces a part that is used in the manufacture of one of its products....
Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6100 units, are as follows: Direct materials $4.50 Direct labor $4.30 Variable manufacturing overhead $3.40 Fixed manufacturing overhead $1.40 Total cost $13.60 The fixed overhead costs are unavoidable. Assuming no other use for its facilities, what is the highest price per unit that Cruise Company should pay for the part? $8.80 $12.20 $5.90 $13.60
Homework Answers
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Highest price Cruise should pay = Direct Materials + Direct Labor + Variable Manufacturing Overhead = 4.50 + 4.30 + 3.40 = 12.20 Option B is the answer |
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Cruise Company produces a part that is used in the manufacture
of one of its products....
Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs...
Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, as 6,000 units, are as follows: Direct materials $4.50 Direct labor $4.30 Variable manufacturing overhead $3.00 Fixed manufacturing overhead $1.10 Total cost $12.90 The fixed overhead costs are unavoidable. Assuming no other use for its facilities, what is the highest price per unit that Cruise Company should pay for the part? O A. $11.80 OB. $8.80 OC....
Cruise Company produces a part that is used in the manufacture of one of its products....
Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6,400 units, are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost The fixed overhead costs are unavoidable. $4.30 $4.50 $3.30 $1.50 $13.60 Assume Cruise Company can purchase 6,400 units of the part from Suri Company for $14.20 each, and the facilities currently used to make the...
Cruise Company produces a part that is used in the manufacture of one of its products....
Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this? part, assuming a production level of 6 comma 300 ?units, are as? follows: Direct materials $ 4.50 Direct labor $ 4.50 Variable manufacturing overhead $ 3.20 Fixed manufacturing overhead $ 1.50 Total cost $ 13.70 The fixed overhead costs are unavoidable. Assume Cruise Company can purchase 6 comma 300 units of the part from Suri Company for $...
Cruise Company produces a part that is used in the manufacture of one of its products....
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McMurphy Corporation produces a part that is used in the manufacture of one of its products....
McMurphy Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 13,000 units of this part are as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Total costs $90,000 128,000 60,000 140,000 $418,000 Of the fixed factory overhead costs, $59,000 is avoidable. Conners Company has offered to sell 13,000 units of the same part to McMurphy Corporation for $41 per unit. Assuming there is no...
McMurphy Corporation produces a part that is used in the manufacture of one of its products....
McMurphy Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 12,000 units of this part are as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Total costs $86,000 126,000 58,000 138,000 $408,000 Of the fixed factory overhead costs, $55,000 is avoidable. Conners Company has offered to sell 12,000 units of the same part to McMurphy Corporation for $41 per unit. Assuming there is no...
McMurphy Corporation produces a part that is used in the manufacture of one of its products....
McMurphy Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 14,000 units of this part are as follows: Direct materials $89,000 Direct labor 129,000 Variable factory overhead 59,000 Fixed factory overhead 138,000 Total costs $415,000 Of the fixed factory overhead costs, $56,000 is avoidable. Conners Company has offered to sell 14,000 units of the same part to McMurphy Corporation for $41 per unit Assuming there is no...
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Cuestr McMurphy Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows: Direct materials $86,000 Direct labor 129,000 Variable factory overhead 56,000 Fixed factory overhead 139,000 Total costs $410,000 Of the fixed factory overhead costs, $59,000 is avoidable. Conners Company has offered to sell 10,000 units of the same part to McMurphy Corporation for $36 per unit Assuming there is...
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Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, as 6,000 units, are as follows: Direct materials $4.50 Direct labor $4.30 Variable manufacturing overhead $3.00 Fixed manufacturing overhead $1.10 Total cost $12.90 The fixed overhead costs are unavoidable. Assuming no other use for its facilities, what is the highest price per unit that Cruise Company should pay for the part? O A. $11.80 OB. $8.80 OC....
Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6,400 units, are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost The fixed overhead costs are unavoidable. $4.30 $4.50 $3.30 $1.50 $13.60 Assume Cruise Company can purchase 6,400 units of the part from Suri Company for $14.20 each, and the facilities currently used to make the...
Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6 200 units are as follows Direct materials 54.30 Direct labor S420 Variable manufacturing overhead 53.10 Fixed manufacturing overhead $1.40 Total cost $13.00 O A. Make the part and save $10 20 per unit O B. Buy from Suri and save $110 per unit OC. Make the part and save $5.00 per...
Piels Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows Direct materials $87,000 126,000 58,000 136,000 $407.000 Direct labor Variable factory overhe ad Fixed factory overhead Total costs Of the fixed factory overhead costs, $55,000 is avoidable Assuming no other use of their facilities, the highest price that Piels should be willing to pay for 10,000 units of the...
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McMurphy Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 12,000 units of this part are as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Total costs $86,000 126,000 58,000 138,000 $408,000 Of the fixed factory overhead costs, $55,000 is avoidable. Conners Company has offered to sell 12,000 units of the same part to McMurphy Corporation for $41 per unit. Assuming there is no...
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