Required:
Buy | Make | |
Direct material | - | $0.20 |
Direct labor | - | $0.15 |
Variable overhead | - | $0.15 |
Purchase cost | $0.60 | - |
Relevent cost per cookies | $0.60 | $0.50 |
Total number of cookies = 10,000 * 2 = 20,000 cookies.
Cost to make 20,000 cookies (20,000 * $0.50) | $10,000 |
(+) Contribution lost | $3,0000 |
Total cost of making cookies | $13,000 |
Total cost of buying cookies (20,000 * $0.60) | $12,000 |
requirea 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 $0.78 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...
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 $0.66 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 $0.86 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...
[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...
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 (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 $0.60 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...
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...
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...