Assuming that the company has no alternative use for the facilities now being used to produce the thermostat, compute the total cost of making and buying the parts. (Round your Fixed manufacturing overhead per unit rate to nearest dollar amount.) | ||||
Per Unit Differential Costs | 12000 units | |||
Make | Buy | Make | Buy | |
Cost of purchasing | $21.00 | $252,000.00 | ||
Direct materials | $4.00 | $48,000.00 | ||
Direct labor | $6.00 | $72,000.00 | ||
Variable manufacturing overhead | $2.00 | $24,000.00 | ||
Fixed manufacturing overhead, traceable = $5 x 40% | $1.50 | $18,000.00 | ||
Fixed manufacturing overhead, common | $0.00 | $0.00 | ||
Total Cost | 13.5 | $21.00 | $162,000.00 | $252,000.00 |
Alanco should Make the Component. |
Please using giving excell formulas from this excel document :) Alanco, Inc a variety of products...
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