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Harcourt Company makes decorative wedding cakes. The company is considering buying the cakes rather than baking...
Hawley Company makes decorative wedding cakes. The company is considering buying the cakes rather than baking them, which will allow it to concentrate on decorating. The company averages 100 wedding cakes per year and incurs the following costs from baking wedding cakes: (Click the icon to view the costs.) Fixed costs are primarily the depreciation on kitchen equipment such as ovens and mixers. Hawley expects to retain the equipment. Hawley can buy the cakes for $21. 11. Should Hawley make...
Winston Company makes decorative wedding cakes. The company is considering buying the cakes rather than baking them, which will allow it to concentrate on decorating. The company averages 100 wedding cakes per year and incurs the following costs from baking wedding cakes: Please see pictures below Thank you Fixed costs are primarily the depreciation on kitchen equipment such as ovens and mixers. Winston expects to retain the equipment. Winston can buy the cakes for $23. Winston Company makes decorative wedding...
$25. Grimm Company makes decorative wedding cakes. The company is considering Fixed costs are primarily the depreciation on kitchen equipment such as ovens buying the cakes rather than baking them, which will allow it to concentrate on and mixers. Grimm expects to retain the equipment. Grimm can buy the cakes for decorating. The company averages 100 wedding cakes per year and incurs the following costs from baking wedding cakes: B (Click the icon to view the costs.) 11. Should Grimm...
For the Wantage boxes drop down options are should or should not for the first drop down and for the second box it is decrease profit by $475 or increase profit by $475. Wantage Company makes decorative wedding cakes. The company is considering buying the cakes rather thanbaking Fixed costs are primarily the depreciation on kitchen equipment such as ovens and mixers. Wantage expects to retain them, which will allow it to concentrate on decorating. The company averages 100 wedding...
Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three activity cost pools. The activity rate for the Size-Related activity cost pool is $1.22 per guest. (The greater the number of guests, the larger the cake.) The activity rate for the Complexity-Related cost pool is $36.21 pertler. (Cakes with more tiers are more complex.) Finally, the activity rate for the Order-Related activity cost pool is $83.33 per order. (Each wedding Involves...
Suppose an Olive Tree restaurant is considering whether to (1) bake bread for its restaurant in-house or (2) buy the bread from a local bakery. The chef estimates that variable costs of making each loaf include $ 0.56 of ingredients, $ 0.24 of variable overhead (electricity to run the oven), and $ 0.73 of direct labor for kneading and forming the loaves. Allocating fixed overhead (depreciation on the kitchen equipment and building) based on direct labor assigns $ 0.96 of...
Uusbon Help Suppose Seafood House restaurant is considering whether to (1) bake bread for its restaurant in-house or (2) buy the bread from a local bakery. The chestimates that are costs of making each nude $0.44 of ingredients, $0 27 of variable overhead (electricity to run the oven) and $0.79 of direct labor for reading and forming the loaves. Alocating fred overhead (depreciation on the kitchen equipment and building) based on direct labor, Seafood House assigns $1.05 of fixed overhead...
90) Assume a company is considering buying 10,000 units of a component part rather than making them. A supplier has agreed to sell the company 10,000 units for a price of $40 per unit. The company’s accounting system reports the following costs of making the part: Per Unit 10,000 Units per Year Direct materials $ 18 $ 180,000 Direct labor 12 120,000 Variable manufacturing overhead 2 20,000 Fixed manufacturing overhead, traceable 8 80,000 Fixed manufacturing overhead, allocated 4 40,000 Total...
Assume you own a company that produces clothing products such as shirts and shorts. Your company has manufactured clothing products locally in the United States for over 30 years. Because low cost competition is increasingly gaining market share and your company costs are relatively high, you are considering outsourcing production to China. 1. Describe how differential analysis can be used to assist in making this type of make-or-buy decision. Include specific examples in your response. 2. What additional factors would...
Vernon Chemical Company makes a variety of cosmetic products, one of which is a skin cream designed to reduce the signs of aging. Vernon produces a relatively small amount (18,000 units) of the cream and is considering the purchase of the product from an outside supplier for $5.90 each. If Vernon purchases from the outside supplier, it would continue to sell and distribute the cream under its own brand name. Vernon's accountant constructed the following profitability analysis: Revenue (18,000 units...