Answer is given below with working.
Units are rounded off
X Company is considering buying a part next year that they currently make. This year's production...
X Company is considering buying a part next year that they currently make. This year's production costs for 3,500 units were as follows: Per-Unit Total Direct materials $3.41 $11,935 Direct labor 4.65 16,275 Variable overhead 2.50 8,750 Fixed overhead 6.00 21,000 Total $16.56 $57,960 A company has offered to supply this part to X Company for $13.71 per unit. If X Company accepts the offer, it will still incur fixed costs of $10,290, but it will be able to lease...
X Company is considering buying a part next year that they currently make. This year's production costs for 3,300 units were as follows: Per-Unit Total Direct $2.92 $9,636 materials 4.89 16,137 Direct labor Variable overhead 2.80 9.240. Fixed overhead 4.90 16,170 Total $15.51 $51,183 A company has offered to supply this part to X Company for $13.81 per unit. If X Company accepts the offer, it will still incur fixed costs of $7,276, but it will be able to lease...
X Company is considering buying a part next year that they currently make. This year's production costs for 3,100 units were as follows: Direct materials Direct labor Variable overhead Fixed overhead Total Per-Unit $2.48 3.09 4.40 3.00 $12.97 Total $7,688 9,579 13,640 9,300 $40,207 A company has offered to supply this part to X Company for $12.38 per unit. If X Company accepts the offer, it will still incur fixed costs of $4,743, but it will be able to lease...
X Company currently makes a part and is considering buying it next year from a company that has offered to supply it for $17.56 per unit. This year, total costs to produce 58,000 units were: Direct materials $377,000 Direct labor 301,600 Variable overhead 237,800 Fixed overhead 69,600 If X Company buys the part, it can avoid $24,360 of the fixed overhead. The resources that will become idle if they choose to buy the part can be used to increase production...
X Company currently makes a part and is considering buying it next year from a company that has offered to supply it for $16.11 per unit. This year, total costs to produce 60,000 units were Direct materials Direct labor Variable overhead Fixed overhead $348,000 312,000 192,000 90,000 If X Company buys the part, it can avoid $21,600 of the fixed overhead. The resources that will become idle if they choose to buy the part can be used to increase production...
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 next year from a company that has offered to supply it for $17.15 per unit. This year, total costs to produce 58,000 units were: Direct materials $400,200 Direct labor 232,000 Variable overhead 261,000 Fixed overhead 87,000 If X Company buys the part, it can avoid $28,710 of the fixed overhead. The resources that will become idle if they choose to buy the part can be used to increase production...
X Company is considering buying a part next year that they currently make. A company has offered to supply this part for $14.74 per unit. This year's total production costs for 55,000 units were: Materials $335,500 Direct labor [all variable] 231,000 Total overhead 192,500 Total production costs $759,000 Of the total overhead costs, $55,000 were fixed, and $42,350 of these fixed overhead costs were unavoidable. If X Company buys the part, the resources that were used for production can be...
X Company currently makes a part and is considering buying it next year from a company that has offered to supply it for $17.12 per unit. This year, total costs to produce 65,000 units were: Direct materials Direct labor Variable overhead Fixed overhead $487,500 305,500 279,500 299,000 If X Company buys the part, $53,820 of the fixed overhead is avoidable. The resources that will become idle if they choose to buy the part can be used to increase production of...
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 $16.74 per unit. Budgeted production in 2020 is 50,000 units, and budgeted per-unit production costs are: X Company is considering buying a part in 2020 that it made in 2019. For 2020, the budgeted production cost function is $10.46X + $17,360, where X is the number of units produced. A company has...