Cost of making the product | Cost of buying the product | |
Direct materials (11,200 * $6.10) | $68,320 | |
Direct labor (11,200 * $1.90) | $21,280 | |
Variable manufacturing overhead (11,200 * $5.50) | $61,600 | |
Supervisor's salary (11,200 * $2.70) | $30,240 | |
Purchasing cost (11,200 * $22.00) | $246,400 | |
Opportunity cost | $29,200 | |
Total cost | $210,640 | $246,400 |
Net operating income would decline by $35,760 ($246,400 - $201,640) because cost of buying the product is more than the cost of making the product.
help please Item N29 is used by Tyner Corporation to make one of its products. A...
Item N29 is used by Tyner Corporation to make one of its products. A total of 11,400 units of this Item are produced and used every year. The company's Accounting Department reports the following costs of producing the Item at this level of activity: Per Unit Direct materials $ 6.30 Direct labor 2.10 Variable manufacturing overhead 5.60 Supervisor’s salary 2.80 Depreciation of special equipment 3.60 Allocated general overhead 3.70 An outside supplier has offered to make the Item and sell...
Item N29 is used by Tyner Corporation to make one of its products. A total of 12,000 units of this Item are produced and used every year. The company's Accounting Department reports the following costs of producing Item N29 at this level of activity: Per Unit Direct materials $ 6.90 Direct labor 2.70 Variable manufacturing overhead 5.90 Supervisor’s salary 3.10 Depreciation of special equipment 4.20 Allocated general overhead 3.70 An outside supplier has offered to make Item N29 and sell...
Part A42 is used by Elgin Corporation to make one of its products. A total of 19,500 units of this part are produced and used every year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Per Unit Direct materials $8.20 Direct labor $9.60 Variable manufacturing overhead $6.20 Supervisor's salary $6.30 Depreciation of special equipment $8.70 Allocated general overhead $6.00 An outside supplier has offered to make the part and sell it...
Item 151 is used in one of Policy Corporation's products. The company makes 21,600 units of this item each year. The company's Accounting Department reports the following costs of producing Item 151 at this level of activity: Direct materials Direct labor Variable manufacturing overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $2.10 $3.10 $4.20 $1.90 $3.60 $9.40 An outside supplier has offered to produce Item 151 and sell it to the company for $19.40 each. If...
Your Corporation is presently making a part that is used in one of its products. A total of 8,000 units of this part are produced and used every year. The company's Accounting has the following costs of producing the part at this level of activity: Direct materials. $3.70 Direct labor $1.00 Variable overhead $6.90 Supervisors salary $8.80 Depreciation of special equipment. $3.30 Allocated general overhead. $1.60 An outside supplier has offered to produce and sell the part to the company...
Part 043 is used in one of Scheet Corporation's products. The company's Accounting Department reports the following costs of producing the 15.100 units of the part e nded every year $300 Direct mators Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Alocated general overhead $5 80 $6 30 $450 An outside supplier has offered to make the part and sell it to the company for $2400 cachIf this offer is accepted the supervisor's salary and all of the...
Mcfarlain Corporation is presently making part U98 that is used in one of its products. A total of 7,000 units of this part are produced and used every year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Per Unit Direct materials $ 3.50 Direct labor $ 4.50 Variable overhead $ 1.90 Supervisor's salary $ 5.50 Depreciation of special equipment $ 5.50 Allocated general overhead $ 6.00 An outside supplier has offered...
Decision Making Problems 1. Rosiek Corporation uses part A55 in one of its products. The company's Accounting Department reports the following costs of producing the 4,000 units of the part that are needed every year. Per Unit $2.80 $6.30 $8.50 $2.60 Direct materials. Direct labor. Variable overhead Supervisor's salary. Depreciation of special equipment. Allocated general overhead. $6.80 $6.10 An outside supplier has offered to make the part and sell it to the company for S32.30 each. If this offer is...
Part T7800 is used in one of Dooley Corporation's products. The company makes 5,000 units of this part each year. The company's Accounting Department reports the following costs of producing the part at this level of activity: $1.00 per unit Direct materials $2.00 per unit Direct labor $6.00 per unit Variable mfg overhead $3.00 per unit Supervisor's salary $9.00 per unit Depreciation of special equipment $4.00 per unit Allocated general overhead An outside supplier has offered to produce this part...
Recher Corporation uses part Q89 in one of its products. The company's Accounting Department reports the following costs of producing the 8,900 units of the part that are needed every year. Per Unit Direct materials $ 8.20 Direct labor $ 4.60 Variable overhead $ 9.10 Supervisor's salary $ 3.40 Depreciation of special equipment $ 2.90 Allocated general overhead $ 1.60 An outside supplier has offered to make the part and sell it to the company for $28.00 each. If this...