ABC company produces 2,000 office equipment annually for its main product. The costs per equipment are...
ABC company produces 2,000 office equipment annually for its main product. The costs per equipment are as follows:
| Direct material | 3 |
|---|---|
| Direct labor | 7 |
| Variable overhead | 4 |
| Fixed overhead | 7 |
| Total |
They received an offer to buy the 2,000 units for $18 per unit. And, $4 of the fixed overhead per unit is unavoidable. How much is the differential cost of buying and producing? (write down your answer in number, e.g.: 60,000 , or -60,000 if negative.
Homework Answers
Request Answer!
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
Add Answer to:
ABC company produces 2,000 office equipment annually for its
main product. The costs per equipment are...
Swifty Corporation currently manufactures a wicket as its main product. The costs per unit are as...
Swifty Corporation currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $10 Variable overhead Fixed overhead Saran Company has contacted Swifty with an offer to sell t 5300 of the wickets for $17 each. Ifswifty makes the wickets, variable costs are字15 per unit. Fixed costs ar e $8 per unit; however, $5 per unit is unavoidable. 5houd S y make or buy the wickets? O Make: savings $10600 Buy:...
Coronado Industries currently manufactures a wicket as its main product. The costs per unit are as follows: Direct mater...
Coronado Industries currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $14 Variable overhead 5 Fixed overhead 8 Total $27 Saran Company has contacted Coronado with an offer to sell it 6300 of the wickets for $21 each. If Coronado makes the wickets, variable costs are $19 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Coronado make or buy the wickets? Make;...
Multiple Choice Question 91 Sheridan Company currently manufactures a wicket as its main product. The costs...
Multiple Choice Question 91 Sheridan Company currently manufactures a wicket as its main product. The costs per unit are as follows: $9 Direct materials and direct labor Variable overhead Fixed overhead Total $22 Saran Company has contacted Sheridan with an offer to sell it 3300 of the wickets for $16 each. If Sheridan makes the wickets, variable costs are $14 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Sheridan make or buy the...
QUES 1: In a month, ABC Company normally produces and sells 8,000 units of its product...
QUES 1: In a month, ABC Company normally produces and sells 8,000 units of its product for $20. Variable manufacturing cost per unit is $10. Total fixed manufacturing costs (up to the maximum capacity of 10,000 units) are $38,000. Delivery cost is $1 per unit and fixed operating costs total $10,000. A customer placed a special order for 1,500 units for $15 each. The customer is willing to shoulder the delivery costs; hence the business will not incur additional variable...
ABC Company produces a single unit that it sells for $20 per unit. ABC has the...
ABC Company produces a single unit that it sells for $20 per unit. ABC has the capacity to produce 28,000 units each month. ABC is currently selling 19,000 units each month. The costs associated with each unit appears below: direct materials $5.00 direct labor 2.50 variable overhead 1.50 fixed overhead 1.00 variable selling costs 4.00 fixed selling costs 0.75 ABC Company has received a special order from a customer who wants to purchase 15,000 units at a reduced price of...
ABC Company produces a single unit that it sells for $20 per unit. ABC has the...
ABC Company produces a single unit that it sells for $20 per unit. ABC has the capacity to produce 28,000 units each month. ABC is currently selling 19,000 units each month. The costs associated with each unit appears below: direct materials direct labor variable overhead fixed overhead variable selling costs fixed selling costs $5.00 2.50 1.50 1.00 4.00 0.75 ABC Company has received a special order from a customer who wants to purchase 15,000 units at a reduced price of...
Exercise 20-7 Riggs Company purchases sails and produces sailboats. It currently produces 1,200 sailboats per year,...
Exercise 20-7 Riggs Company purchases sails and produces sailboats. It currently produces 1,200 sailboats per year, operating at normal capacity, which is about 80% of full capacity. Riggs purchases sails at $257 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $94.05 for direct materials, $86.30 for direct labor, and $90 for overhead. The $90 overhead includes $78,000 of annual fixed overhead that is allocated using normal...
Question 2 Cullumber Company purchases sails and produces sailboats. It currently produces 1,240 sailboats per year,...
Question 2 Cullumber Company purchases sails and produces sailboats. It currently produces 1,240 sailboats per year, operating at normal capacity, which is about 80% of full capacity. Cullumber purchases sails at $255 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $91 for direct materials, $85 for direct labor, and $90 for overhead. The $90 overhead is based on $78,120 of annual fixed overhead that is allocated...
Blue Company purchases sails and produces sailboats. It currently produces 1,200 sailboats per year, operating at...
Blue Company purchases sails and produces sailboats. It
currently produces 1,200 sailboats per year, operating at normal
capacity, which is about 80% of full capacity. Blue purchases sails
at $267 each, but the company is considering using the excess
capacity to manufacture the sails instead. The manufacturing cost
per sail would be $99.02 for direct materials, $84.23 for direct
labor, and $90 for overhead. The $90 overhead is based on $78,000
of annual fixed overhead that is allocated using normal...
Sage Corporation currently manufactures a subassembly for its main product. The costs per unit are as...
Sage Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials Direct labour Variable overhead Fixed overhead Total $ 3.70 27.80 14.10 26.10 $71.70 Regina Corp. has contacted Sage with an offer to sell it 5,100 subassemblies for $52.10 each. Your answer is correct. Should Sage make or buy the subassemblies? Create a schedule that shows the total quantitative differences between the two alternatives. (Round all entries to 2 decimal places, e.g....
Swifty Corporation currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $10 Variable overhead Fixed overhead Saran Company has contacted Swifty with an offer to sell t 5300 of the wickets for $17 each. Ifswifty makes the wickets, variable costs are字15 per unit. Fixed costs ar e $8 per unit; however, $5 per unit is unavoidable. 5houd S y make or buy the wickets? O Make: savings $10600 Buy:...
Multiple Choice Question 91 Sheridan Company currently manufactures a wicket as its main product. The costs per unit are as follows: $9 Direct materials and direct labor Variable overhead Fixed overhead Total $22 Saran Company has contacted Sheridan with an offer to sell it 3300 of the wickets for $16 each. If Sheridan makes the wickets, variable costs are $14 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Sheridan make or buy the...
ABC Company produces a single unit that it sells for $20 per unit. ABC has the capacity to produce 28,000 units each month. ABC is currently selling 19,000 units each month. The costs associated with each unit appears below: direct materials direct labor variable overhead fixed overhead variable selling costs fixed selling costs $5.00 2.50 1.50 1.00 4.00 0.75 ABC Company has received a special order from a customer who wants to purchase 15,000 units at a reduced price of...
Exercise 20-7 Riggs Company purchases sails and produces sailboats. It currently produces 1,200 sailboats per year, operating at normal capacity, which is about 80% of full capacity. Riggs purchases sails at $257 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $94.05 for direct materials, $86.30 for direct labor, and $90 for overhead. The $90 overhead includes $78,000 of annual fixed overhead that is allocated using normal...
Question 2 Cullumber Company purchases sails and produces sailboats. It currently produces 1,240 sailboats per year, operating at normal capacity, which is about 80% of full capacity. Cullumber purchases sails at $255 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $91 for direct materials, $85 for direct labor, and $90 for overhead. The $90 overhead is based on $78,120 of annual fixed overhead that is allocated...
Blue Company purchases sails and produces sailboats. It
currently produces 1,200 sailboats per year, operating at normal
capacity, which is about 80% of full capacity. Blue purchases sails
at $267 each, but the company is considering using the excess
capacity to manufacture the sails instead. The manufacturing cost
per sail would be $99.02 for direct materials, $84.23 for direct
labor, and $90 for overhead. The $90 overhead is based on $78,000
of annual fixed overhead that is allocated using normal...
Sage Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials Direct labour Variable overhead Fixed overhead Total $ 3.70 27.80 14.10 26.10 $71.70 Regina Corp. has contacted Sage with an offer to sell it 5,100 subassemblies for $52.10 each. Your answer is correct. Should Sage make or buy the subassemblies? Create a schedule that shows the total quantitative differences between the two alternatives. (Round all entries to 2 decimal places, e.g....
Most questions answered within 3 hours.
-
To test Upper H 0 : sigma =2.3 versus Upper H 1 : sigma greater
than...
asked 30 minutes ago -
explain using physics theory either one
Why should you not put foil in the microwave? or...
asked 47 minutes ago -
You have purchased a $1,000,000 million Face or Par Value 5-year
T-note. This 5-year T-note pays...
asked 45 minutes ago -
Describe what “scope creep” is and how can it be avoided? Who is
typically the person...
asked 35 minutes ago -
Any permanent decrease in autonomous real spending will cause
even larger decreases in real GDP per...
asked 36 minutes ago -
A large distributor has 8 retail outlets. Currently each outlet
manages its ordering independently. Demand at...
asked 48 minutes ago -
Two objects repel/attract each other. What can one say about their
charges?
asked 44 minutes ago -
9 A website that facilitates transactions by bringing together
buyers and sellers from all over the...
asked 49 minutes ago -
Write a command line to view the long listing of all files,
including hidden files, with...
asked 1 hour ago -
What kind of experiment would allow you to test that the
posterior cytoplasm can cause the...
asked 1 hour ago -
Code in C++ please!
Write a function that takes an array of integers as an input...
asked 1 hour ago -
Predict the reactions, if any, when the
following hydrogen compounds are added to water, and
explain...
asked 1 hour ago