1 | ||
Incremental cost of making RX5 | Making the units | |
Total direct materials | 250000 | =50000*5 |
Total direct labor | 400000 | =50000*8 |
Variable overhead costs | 90000 | =50000*9*20% |
Total Incremental cost of making 50000 units | 740000 | |
2 | ||
Incremental cost of buying RX5 | Buying the units | |
Cost to buy the units | 900000 | =50000*18 |
Total Incremental cost of buying 50000 units | 900000 | |
3 | ||
Make the units |
Haver Company currently produces component RX5 for its sole product. The current cost per unit to...
Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 50.000 units of RX5 follows. Direct materials $ 5.00 Direct labor Overhead Total costs per unit $22.00 8.00 9.00 Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 50,000 units of RX5 for $18.00 per unit. Required: 1. Calculate the incremental costs of making and buying component RX5. Total incremental...
Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 57,000 units of RX5 follows. Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 57,000 units of RX5 for $19.00 per unit. Required: 1. Determine the total incremental cost of making 57,000 units of RX5. 2. Determine the total incremental cost of buying 57,000 units of RX5. 3. Should the...
Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 54,000 units of RX5 follows. Direct materials Direct labor Overhead Total costs per unit $ 5.00 9.00 10.89 24.00 Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 54,000 units of RX5 for $18.00 per unit. Required: 1. Calculate the incremental costs of making and buying component RX5. Total incremental...
Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 53,000 units of RX5 follows. Direct materials Direct labor Overhead Total costs per unit $ 5.00 9.00 10.00 24.00 Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 53,000 units of RX5 for $20.00 per unit. Required: 1. Calculate the incremental costs of making and buying component RX5. Total incremental...
Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 58,000 units of RX5 follows. Direct materials Direct labor Overhead Total costs per unit $ 5.00 9.00 10.00 24.00 Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 58,000 units of RX5 for $19.00 per unit. Required: 1. Calculate the incremental costs of making and buying component RX5. Total incremental...
Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 65,000 units of RX5 follows. $ 5.00 9.00 Direct materials Direct labor Overhead 10.00 $ 24.00 Total costs per unit Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 65,000 units of RX5 for $20.00 per unit. Required: 1. Calculate the incremental costs of making and buying component RX5. Total...
Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 56,000 units of RX5 follows $ 4.00 Direct materials Direct labor 8.00 Overhead 9.00 Total costs per unit 21.00 Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 56,000 units of RX5 for $19.00 per unit. Required: 1. Calculate the incremental costs of making and buying component RX5 Buying the...
23 Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 58,000 units of RX5 follows. Direct materials Direct labor Overhead Total costs per unit $ 4.00 8.00 9.00 21.00 Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 58,000 units of RX5 for $19.00 per unit. Required: 1. Calculate the incremental costs of making and buying component RX5. Total...
Haver Company currently produces component RXS for its sole product. The current cost per unit to manufacture the required 67000 units of RX5 follows. 9.00 Direct materials Direct labor Overhead Total costs per unit 24.08 Direct materials and direct labor are 100% variable, Overhead is 80% fixed. An outside supplier has offered to supply the 67.000 unit of RX5 for $18.00 per unit. Required: 1. Calculate the incremental costs of making and buying component RX5. Buying the units Total incremental...
Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 64,000 units of RX5 follows. Direct materials $ 4.00 Direct labor 8.00 Overhead 9.00 Total costs per unit 21.00 Direct materials and direct labor are 100% variable. Overhead is 70% fixed. An outside supplier has offered to supply the 64,000 units of RX5 for $20.00 per unit. Required: 1. Calculate the incremental costs of making and buying component RX5.