The SP Corporation makes 37,000 motors to be used in the production of its sewing machines. The average cost per motor at this level of activity is:
Direct materials | $ | 9.60 |
Direct labor | $ | 8.60 |
Variable manufacturing overhead | $ | 3.50 |
Fixed manufacturing overhead | $ | 4.45 |
An outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to SP Corporation for this motor is $24.25. If SP Corporation decides not to make the motors, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. Direct labor is a variable cost in this company. The annual financial advantage (disadvantage) for the company as a result of making the motors rather than buying them from the outside supplier would be:
The SP Corporation makes 37,000 motors to be used in the production of its sewing machines....
The SP Corporation makes 34,000 motors to be used in the production of its sewing machines. The average cost per motor at this level of activity is: Direct materials $ 9.30 Direct labor $ 8.30 Variable manufacturing overhead $ 3.35 Fixed manufacturing overhead $ 4.30 An outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to SP Corporation for this motor is $23.35. If SP Corporation decides not to make...
The SP Corporation makes 32,000 motors to be used in the production of its sewing machines. The average cost per motor at this level of activity is: Direct materials $ 9.10 Direct labor $ 8.10 Variable manufacturing overhead $ 3.25 Fixed manufacturing overhead $ 4.20 An outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to SP Corporation for this motor is $22.75. If SP Corporation decides not to make...
The SP Corporation makes 36,000 motors to be used in the production of its sewing machines. The average cost per motor at this level of activity is: Direct materials $ 9.50 Direct labor $ 8.50 Variable manufacturing overhead $ 3.45 Fixed manufacturing overhead $ 4.40 An outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to SP Corporation for this motor is $23.95. If SP Corporation decides not to make...
S Corporation makes 41,000 motors to be used in the production of its sewing machines. The average cost per motor at this level of activity is: Direct materials $10.00 Direct labor $9.00 Variable manufacturing overhead Fixed manufacturing overhead $ 3.70 4.65 An outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to S Corporation for this motor is $25.45. If S Corporation decides not to make the motors, there would...
Inland Corporation manufactures 1.000 motors that are used in the production of its go-karts Inland has been appronched by an outside supplier that will sell the motor to Inland for $39 each Inland's cost to manufacture each motor are as follows: Direee material Direct Aabor Vatiable overhead Fixed overhead Total $25 $8 $4 $43 All fixed overhead is unavoidable, and is allocated based on machine hours. The facilities that are used to manufacture the motors have no alternative uses. a....
Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $19, computed as follows: Direct materials $ 7 Direct labor 5 Variable manufacturing overhead 2 Fixed manufacturing overhead 5 Unit product cost $ 19 An outside supplier has offered to provide the annual requirement of 6,600 of the parts for only $15 each. The company estimates that 80% of the fixed manufacturing overhead cost above could be eliminated if the parts...
Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $17, computed as follows: Direct materials $ 6 Direct labor 3 Variable manufacturing overhead 3 Fixed manufacturing overhead 5 Unit product cost $ 17 An outside supplier has offered to provide the annual requirement of 7,800 of the parts for only $11 each. The company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated if the parts...
Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $23, computed as follows: $ 8 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 1 6 $23 Unit product cost An outside supplier has offered to provide the annual requirement of 4,700 of the parts for only $10 each. The company estimates that 50% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased...
Supler Corporation produces a part used In the manufacture of one of its products. The unit product cost is $22, computed as follows: al. Variable nanufacturirg overhead 1 Fixed nanufacturing overhead tUnit product cost 22 An outside supplier has offered to provide the annual requirement of 7,000 of the parts for only $16 each. The company estimates that 50 % of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. Assume...