Answer: | ||
Total no. of Cookies = No. of lunch boxes x No. of Cookies = 10,000 boxes x 2 |
20,000 Cookies | |
Make | Buy | |
Variable costs per unit: | ||
Direct materials cost | $ 0.20 | $ 0 |
Direct labor cost | $ 0.18 | $ 0 |
Overhead cost ( $ 0.63 (-) $ 0.39 ) |
$ 0.24 | $ 0 |
Purchase Costs | - | $ 0.66 |
Total Variable cost per unit | $ 0.62 | $ 0.66 |
Cost of making (20,000 cookies x $ $ 0.62 ) |
$ 12,400 | |
Add: Contribution from sale of dinners | $ 3,900 | |
Total Cost of making cookies | $ 16,300 | |
Total Cost of buying
cookies ( 20,000 x $ 0.66 ) |
$ 13,200 | |
Required information (The following information applies to the questions displayed below.) Mel's Meals 2 Go purchases...
Required information (The following information applies to the questions displayed below.) Mel's Meals 2 Go purchases cookies that it includes in the 10,000 box lunches it prepares and sells annually. Mel's kitchen and adjoining meeting room operate at 70 percent of capacity. Mel's purchases the cookies for $0.66 each but is considering making them instead. Mel's can bake each cookie for $0.20 for materials, $0.18 for direct labor, and $0.63 for overhead without increasing its capacity. The $0.63 for overhead...
! Required information [The following information applies to the questions displayed below.) Mel's Meals 2 Go purchases cookies that it includes in the 10,000 box lunches it prepares and sells annually. Mel's kitchen and adjoining meeting room operate at 70 percent of capacity. Mel's purchases the cookies for $0.78 each but is considering making them instead. Mel's can bake each cookie for $0.28 for materials, $0.15 for direct labor, and $0.53 for overhead without increasing its capacity. The $0.53 for...
requirea information The following information applies to the questions displayed below.) Mel's Meals 2 Go purchases cookies that it includes in the 10,000 box lunches it prepares and sells annually. Mel's kitchen and adjoining meeting room operate at 70 percent of capacity. Mel's purchases the cookies for $0.60 each but is considering making them instead. Mel's can bake each cookie for $0.20 for materials, $0.15 for direct labor, and $0.45 for overhead without increasing its capacity. The $0.45 for overhead...
[The following information applies to the questions displayed below.) Mel's Meals 2 Go purchases cookies that it includes in the 10,000 box lunches it prepares and sells annually. Mel's kitchen and adjoining meeting room operate at 70 percent of capacity. Mel's purchases the cookies for $0.66 each but is considering making them instead. Mel's can bake each cookie for $0.20 for materials, $0.18 for direct labor, and $0.63 for overhead without increasing its capacity. The $0.63 for overhead includes an...
Required Information (The following information applies to the questions displayed below.) Mel's Meals 2 Go purchases cookies that it includes in the 10,000 box lunches it prepares and sells annually. Mel's kitchen and adjoining meeting room operate at 70 percent of capacity. Mel's purchases the cookies for $0.66 each but is considering making them instead. Mel's can bake each cookle for $0.20 for materials, $0.18 for direct labor, and $0.63 for overhead without increasing its capacity. The $0.63 for overhead...
Required information [The following information applies to the questions displayed below.] Mel’s Meals 2 Go purchases cookies that it includes in the 10,000 box lunches it prepares and sells annually. Mel’s kitchen and adjoining meeting room operate at 70 percent of capacity. Mel’s purchases the cookies for $0.86 each but is considering making them instead. Mel’s can bake each cookie for $0.33 for materials, $0.15 for direct labor, and $0.57 for overhead without increasing its capacity. The $0.57 for overhead...
Mel’s Meals 2 Go purchases cookies that it includes in the 10,000 box lunches it prepares and sells annually. Mel’s kitchen and adjoining meeting room operate at 70 percent of capacity. Mel’s purchases the cookies for $0.78 each but is considering making them instead. Mel’s can bake each cookie for $0.28 for materials, $0.15 for direct labor, and $0.53 for overhead without increasing its capacity. The $0.53 for overhead includes an allocation of $0.34 per cookie for fixed overhead. However,...
Required Information Exercise 4-47 and 4-48 (Algo) (LO 4-4) [The following information applies to the questions displayed below) Mel's Meals 2 Go purchases cookles that it includes in the 10,000 box lunches it prepares and sells annually. Mel's kitchen and adjoining meeting room operate at 70 percent of capacity. Mel's purchases the cookies for $0.62 each but is considering making them instead. Mel's can bake each cookie for $0.20 for materials, $0.18 for direct labor, and $0.61 for overhead without...
Required information
[The following information applies to the questions displayed
below.]
Mel’s Meals 2 Go purchases cookies that it includes in the
10,000 box lunches it prepares and sells annually. Mel’s kitchen
and adjoining meeting room operate at 70 percent of capacity. Mel’s
purchases the cookies for $0.60 each but is considering making them
instead. Mel’s can bake each cookie for $0.20 for materials, $0.15
for direct labor, and $0.45 for overhead without increasing its
capacity. The $0.45 for overhead...
Domingo Corporation makes a variety of headphones with logos. The company has discovered a new market for wireless headphones with logos. Market research indicates that these headphones would sell well in the market priced at $40.00 each. Domingo desires an operating profit of 25 percent of costs. Required: What is the highest acceptable manufacturing cost for which Domingo would be willing to produce the headphones? 2. Mel’s Meals 2 Go purchases cookies that it includes in the 10,000 box lunches...