Homework Answers
Correct answer----------Make component because they save $2000
Working
| Differential Analysis | ||
| Make | Buy | |
| Direct material | $ 15,000.00 | |
| Direct labor | $ 12,000.00 | |
| Variable Overheads | $ 6,000.00 | |
| Avoidable Fixed overhead | $ 5,000.00 | |
| Purchase price | $ 40,000.00 | |
| Total relevant Cost | $ 38,000.00 | $ 40,000.00 |
.
| Total Cost of Buying | $ 40,000 |
| Total Cost of manufacturing | $ 38,000 |
| Financial advantage of making | $ 2,000 |
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Sunday, September 20, 2020 1:07 PM Given the following information, if the company is offered a...
Your Answer incorrect Given the following, determine if a buy price for 3,000 units @ $4.00...
Your Answer incorrect Given the following, determine if a buy price for 3,000 units @ $4.00 per unit should be accepted or if the company should continue to make the 3,000 units. F Feedback Direct materials ($1.00 per unit) $3,000 Labor ($1.60 per unit) $4,800 Variable overhead ($1.10 per unit) $3,300 Fixed overhead $1,500 Common costs $2,000 If the company buys the component, all of the variable costs and fixed overhead costs are differential. None of the common costs will...
What is the residual income for Rushville Division with investment? (а) (b) (c) 9. $34,200. $...
What is the residual income for Rushville Division with investment? (а) (b) (c) 9. $34,200. $ 6,000 $10,200 S 6,600. What is the return on investment for Rushyille Division with the additional project investment? (a) (b) 10. 34.20% 12.00%. 14.87 % (d) 15.00%. 11. Mattoon Company uses part 65A in the production of color printers. Unit manufacturing costs of part 65A are shown below. MATTOON COMPANY UNIT COSTS INCURRED FOR PRODUCING PART 65A Direct materials 8.00 Direct labor 2.00 Variable...
19. Mattoon Company uses part 65A in the production of color printers. Unit manufacturing costs of...
19. Mattoon Company uses part 65A in the production of color printers. Unit manufacturing costs of part 65A are shown below. MATTOON COMPANY UNIT COSTS INCURRED FOR PRODUCING PART 65A Direct materials 8.00 Direct labor 2.00 Variable manufacturing overhead 1.00 Fixed manufacturing overhead 4.00 Mattoon uses 100.000 units of 65A per year. Joliet, Inc. has offered to sell Mattoon 100,000 units of 65A per year for 512 per unit. If the company buys the part from Joliet, fixed manufacturing overhead...
Make-or-Buy Decision Zion Manufacturing had always made its components in-house. However, Bryce Component Works had recently...
Make-or-Buy Decision Zion Manufacturing had always made its components in-house. However, Bryce Component Works had recently offered to supply one component, K2, at a price of $12 each. Zion uses 4,200 units of Component K2 each year. The cost per unit of this component is as follows: Direct materials $7.61 Direct labor 2.40 Variable overhead 1.98 Fixed overhead 3.00 Total $14.99 The fixed overhead is an allocated expense; none of it would be eliminated if production of Component K2 stopped....
19. Mattoon Company uses part 65A in the production of color printers. Unit manufacturing costs of part 65A are s...
19. Mattoon Company uses part 65A in the production of color printers. Unit manufacturing costs of part 65A are shown below. 8.00 MATTOON COMPANY UNIT COSTS INCURRED FOR PRODUCING PART 65A Direct materials Direct labor 2.00 Variable manufacturing overhead 1.00 Fixed manufacturing overhead 4.00 Mattoon uses 100.000 units of 65A per year. Joliet, Inc. has offered to sell Mattoon 100,000 units of 65A per year for 512 per unit. If the company buys the part from Joliet, fixed manufacturing overhead...
19. Marathon Manufacturing Company can make 10,000 units of a necessary component part with the following...
19. Marathon Manufacturing Company can make 10,000 units of a necessary component part with the following costs per unit: Direct Materials $15 Direct Labor Variable Overhead Fixed Overhead Product cost per unit $55 Marathon Manufacturing Company can purchase the component externally for $38 per unit. Only 25% of the total fixed costs can be avoided. What is the correct make-or-buy decision in order to maximize net income? a. Make and save $12,000 6 Buy and save $12,000 C. Make and...
Questions 1 and 2 refer to the following information: X Company is considering buying a part...
Questions 1 and 2 refer to the following information: X Company is considering buying a part next year that it currently makes. This year's production costs for 3,200 units were: Direct materials Direct labor Variable overhead Fixed overhead Total Per-Unit 3.85 3.65 3.50 4.00 Total $12,320 11,680 11,200 12,800 $48,000 $15.00 A company has offered to supply this part for $14.85 per unit. 6,400 of X Company's fixed overhead are allocated costs that will occur even if they buy the...
X Company currently makes a part and is considering buying it from a company that has...
X Company currently makes a part and is considering buying it from a company that has offered to supply it for $20.56 per unit. This year, per-unit production costs to produce 19,000 units were: $8.00 Direct materials Direct labor Overhead Total 6.80 6.40 $21.20 $43,700 of the total overhead costs were fixed. $19,228 of the fixed overhead costs are unavoidable if X Company buys the part. If the company buys the part, the resources that are used to make it...
Questions 1 & 2 in Photo 1 Question 3 in Photo 2 Make-or-Buy Decision Zion Manufacturing...
Questions 1 & 2 in Photo 1
Question 3 in Photo 2
Make-or-Buy Decision Zion Manufacturing had always made its components in-house. However, Bryce Component Works had recently offered to supply one component, K2, at a price of $13 each. Zion uses 4,600 units of Component K2 each year. The cost per unit of this component is as follows: Direct materials $7.59 2.91 Direct labour Variable overhead 1.89 3.00 Fixed overhead $15.39 Total The fixed overhead is an allocated expense;...
X Company is considering buying a part in 2020 that it has been making for the...
X Company is considering buying a part in 2020 that it has been
making for the past several years. A company has offered to supply
this part for $18.03 per unit. Budgeted production in 2020 is
52,000 units, and budgeted per-unit production costs are:
Materials
$6.50
Direct labor [all variable]
5.80
Total overhead
5.30
Total
$17.60
$78,000 of X Company's total overhead costs are fixed; $50,700 of
the $78,000 are unavoidable even if it buys the part. Also, if X...
Your Answer incorrect Given the following, determine if a buy price for 3,000 units @ $4.00 per unit should be accepted or if the company should continue to make the 3,000 units. F Feedback Direct materials ($1.00 per unit) $3,000 Labor ($1.60 per unit) $4,800 Variable overhead ($1.10 per unit) $3,300 Fixed overhead $1,500 Common costs $2,000 If the company buys the component, all of the variable costs and fixed overhead costs are differential. None of the common costs will...
What is the residual income for Rushville Division with investment? (а) (b) (c) 9. $34,200. $ 6,000 $10,200 S 6,600. What is the return on investment for Rushyille Division with the additional project investment? (a) (b) 10. 34.20% 12.00%. 14.87 % (d) 15.00%. 11. Mattoon Company uses part 65A in the production of color printers. Unit manufacturing costs of part 65A are shown below. MATTOON COMPANY UNIT COSTS INCURRED FOR PRODUCING PART 65A Direct materials 8.00 Direct labor 2.00 Variable...
19. Mattoon Company uses part 65A in the production of color printers. Unit manufacturing costs of part 65A are shown below. MATTOON COMPANY UNIT COSTS INCURRED FOR PRODUCING PART 65A Direct materials 8.00 Direct labor 2.00 Variable manufacturing overhead 1.00 Fixed manufacturing overhead 4.00 Mattoon uses 100.000 units of 65A per year. Joliet, Inc. has offered to sell Mattoon 100,000 units of 65A per year for 512 per unit. If the company buys the part from Joliet, fixed manufacturing overhead...
19. Mattoon Company uses part 65A in the production of color printers. Unit manufacturing costs of part 65A are shown below. 8.00 MATTOON COMPANY UNIT COSTS INCURRED FOR PRODUCING PART 65A Direct materials Direct labor 2.00 Variable manufacturing overhead 1.00 Fixed manufacturing overhead 4.00 Mattoon uses 100.000 units of 65A per year. Joliet, Inc. has offered to sell Mattoon 100,000 units of 65A per year for 512 per unit. If the company buys the part from Joliet, fixed manufacturing overhead...
19. Marathon Manufacturing Company can make 10,000 units of a necessary component part with the following costs per unit: Direct Materials $15 Direct Labor Variable Overhead Fixed Overhead Product cost per unit $55 Marathon Manufacturing Company can purchase the component externally for $38 per unit. Only 25% of the total fixed costs can be avoided. What is the correct make-or-buy decision in order to maximize net income? a. Make and save $12,000 6 Buy and save $12,000 C. Make and...
Questions 1 and 2 refer to the following information: X Company is considering buying a part next year that it currently makes. This year's production costs for 3,200 units were: Direct materials Direct labor Variable overhead Fixed overhead Total Per-Unit 3.85 3.65 3.50 4.00 Total $12,320 11,680 11,200 12,800 $48,000 $15.00 A company has offered to supply this part for $14.85 per unit. 6,400 of X Company's fixed overhead are allocated costs that will occur even if they buy the...
X Company currently makes a part and is considering buying it from a company that has offered to supply it for $20.56 per unit. This year, per-unit production costs to produce 19,000 units were: $8.00 Direct materials Direct labor Overhead Total 6.80 6.40 $21.20 $43,700 of the total overhead costs were fixed. $19,228 of the fixed overhead costs are unavoidable if X Company buys the part. If the company buys the part, the resources that are used to make it...
Questions 1 & 2 in Photo 1
Question 3 in Photo 2
Make-or-Buy Decision Zion Manufacturing had always made its components in-house. However, Bryce Component Works had recently offered to supply one component, K2, at a price of $13 each. Zion uses 4,600 units of Component K2 each year. The cost per unit of this component is as follows: Direct materials $7.59 2.91 Direct labour Variable overhead 1.89 3.00 Fixed overhead $15.39 Total The fixed overhead is an allocated expense;...
X Company is considering buying a part in 2020 that it has been
making for the past several years. A company has offered to supply
this part for $18.03 per unit. Budgeted production in 2020 is
52,000 units, and budgeted per-unit production costs are:
Materials
$6.50
Direct labor [all variable]
5.80
Total overhead
5.30
Total
$17.60
$78,000 of X Company's total overhead costs are fixed; $50,700 of
the $78,000 are unavoidable even if it buys the part. Also, if X...
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