1) Differential cost
Per Unit Differential Costs | 22000 Units | |||
Make | Buy | Make | Buy | |
Cost of purchasing | 42.50 | 935000 | ||
Cost of making | ||||
Direct materials | 5.30 | 116600 | ||
Direct labor | 7 | 154000 | ||
Variable overhead | 2.80 | 61600 | ||
Fixed overhead | 3 | 66000 | ||
Total Cost | 18.10 | 398200 |
Profit would Decrease by (928000-935000) = -$7000
Han Products manufactures 22,000 units of part S-6 each year for use on its production line....
Han Products manufactures 25,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: 4,70 Direct materials Direct labor 8.00 3.40 Variable manufacturing overhead Fixed manufacturing overhead 15.00 $31.10 Total cost per part An outside supplier has offered to sell 25,000 units of part S-6 each year to Han Products for $50.00 per part. If Han Products accepts this offer, the facilities now being used...
Han Products manufactures 23,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: $ 4.00 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part 18.00 $ 30 80 An outside supplier has offered to sell 23,000 units of part S-6 each year to Han Products for $45.00 per part. If Han Products accepts this offer, the facilities now being...
Han Products manufactures 16,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials $ 4.10 Direct labor 6.00 Variable manufacturing overhead 2.50 Fixed manufacturing overhead 15.00 Total cost per part $ 27.60 An outside supplier has offered to sell 16,000 units of part S-6 each year to Han Products for $43.00 per part. If Han Products accepts this offer, the...
Han Products manufactures 40,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials $3.30 Direct labor 12.00 Variable manufacturing overhead Fixed manufacturing overhead 2.70 6.00 Total cost per part 24.00 An outside supplier has offered to sell 40,000 units of part S-6 each year to Han Products for $22 per part. If Han Products accepts this offer, the facilities now being used...
Han Products manufactures 36,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 4.00 8.00 2.00 9.00 $ 23.00 An outside supplier has offered to sell 36,000 units of part 5-6 each year to Han Products for $19 per part. If Han Products accepts this offer, the facilities now...
Han Products manufactures 26,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 4.00 9.00 2.00 9.00 $ 24.00 An outside supplier has offered to sell 26,000 units of part S-6 each year to Han Products for $20 per part. If Han Products accepts this offer, the facilities now...
Han Products manufactures 34,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Han Products manufactures 34,000 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part 5-6 is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 3.80 11.00 2.20 6.00 $23.00 An outside...
Han Products manufactures 30,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials $ 3.60 Direct labor 10.00 Variable manufacturing overhead 2.40 Fixed manufacturing overhead 9.00 Total cost per part $ 25.00 An outside supplier has offered to sell 30,000 units of part S-6 each year to Han Products for $21 per part. If Han Products accepts this offer, the...
Han Products manufactures 15,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials $ 5.40 Direct labor 7.00 Variable manufacturing overhead 4.00 Fixed manufacturing overhead 9.00 Total cost per part $ 25.40 An outside supplier has offered to sell 15,000 units of part S-6 each year to Han Products for $44.50 per part. If Han Products accepts this offer, the facilities now...
Han Products manufactures 28,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials $ 4.20 Direct labor 7.00 Variable manufacturing overhead 3.10 Fixed manufacturing overhead 15.00 Total cost per part $ 29.30 An outside supplier has offered to sell 28,000 units of part S-6 each year to Han Products for $48.50 per part. If Han Products accepts this offer, the...