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Safety Products currently outsources an electrical switch that is a component in its sprinkler systems. The...
Benitez Company currently outsources a relay switch that is a component in one of its products....
Benitez Company currently outsources a relay switch that is a component in one of its products. The switches cost $23 each. The company is considering making the switches internally at the following projected annual production costs: Unit-level material cost $ 4 Unit-level labor cost $ 3 Unit-level overhead $ 2 Batch-level set-up cost (6,000 units per batch) $ 32,000 Product-level supervisory salaries $ 41,000 Allocated facility-level costs $ 27,000 The company expects an annual need for 6,000 switches. If the...
Benitez Company currently outsources a relay switch that is a component in one of its products....
Benitez Company currently outsources a relay switch that is a component in one of its products. The switches cost $35 each. The company is considering making the switches internally at the following projected annual production costs: $ $ 7 6 Unit-level material cost Unit-level labor cost Unit-level overhead Batch-level set-up cost (8,000 units per batch) Product-level supervisory salaries Allocated facility-level costs $50,000 $50,000 $45,000 The company expects an annual need for 8,000 switches. If the company makes the product, it...
M and M, Inc produces a product that has a variable cost of $4.50 per unit....
M and M, Inc produces a product that has a variable cost of $4.50 per unit. The company's fixed costs are $56,000 The product is sold for $8 per unit and the company desires to earn a target praft of $17,500. What is the amount of sales t calculations that will be necessary to earn the desired proft? (Do not round intermediate Benitez Company currently outsources a relay switch that is a component in one of its products. The switches...
Current-Control Inc. manufactures a variety of electrical switches. The company is currently manufacturing all of its...
Current-Control Inc. manufactures a variety of electrical
switches. The company is currently manufacturing all of its own
component parts. An outside supplier has offered to sell a switch
to Current-Control for $32 per unit. To evaluate this offer,
Current-Control has gathered the following information relating to
its own cost of producing the switch internally:
Per
Unit
12,000 Units
per Year
Direct materials
$ 12
$144,000
Direct labour
10
120,000
Variable manufacturing overhead
3
36,000
Fixed manufacturing overhead, traceable
8*
96,000...
Benson Electronics currently produces the shipping containers it uses to deliver the electronics products it sells....
Benson Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,100 containers follows: Unit-level materials Unit-level labor Unit-level overhead Product-level costs* Allocated facility-level costs $ 6,000 6,700 3,700 9,900 26,900 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Benson for $2.50 each. Required a. Calculate the total relevant cost. Should Benson continue to make the containers?...
Adams Electronics currently produces the shipping containers it uses to deliver the electronics products it sells....
Adams Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,200 containers follows: Unit-level materials Unit-level labor Unit-level overhead Product-level costs Allocated facility-level costs $ 6,100 6,600 3,400 8.400 28,100 *One-third of these costs can be avoided by purchasing the containers Russo Container Company has offered to sell comparable containers to Adams for $2.60 each. Required a. Calculate the total relevant cost. Should Adams continue to make the containers?...
Benson Electronics currently produces the shipping containers it uses to deliver the electronics products it sells....
Benson Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,000 containers follows: Unit-level materials $ 5,400 Unit-level labor 6,300 Unit-level overhead 3,300 Product-level costs* 12,000 Allocated facility-level costs 26,900 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Benson for $2.70 each. Required Calculate the total relevant cost. Should Benson continue to make the containers? Benson...
Stuart Electronics currently produces the shipping containers it uses to deliver the electronics products it sells....
Stuart Electronics currently produces the shipping containers it
uses to deliver the electronics products it sells. The monthly cost
of producing 9,200 containers follows:
Unit-level materials Unit-level labor Unit-level overhead Product-level costs* Allocated facility-level osts 27,200 $ 6,800 6,400 4,000 11,400 One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Stuart for $2.80 each Required a. Calculate the total relevant cost. Should Stuart continue to make the containers?...
Stuart Electronics currently produces the shipping containers it uses to deliver the electronics products it sells....
Stuart Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,000 containers follows. Unit-level materials $ 5,100 Unit-level labor 6,700 Unit-level overhead 3,900 Product-level costs* 8,100 Allocated facility-level costs 27,000 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Stuart for $2.80 each. Required Calculate the total relevant cost. Should Stuart continue to make the containers? Stuart...
Problem 8-24 Wright Water Co. is a leading producer of greenhouse irrigation systems. Currently, the company manuf...
Problem 8-24 Wright Water Co. is a leading producer of greenhouse irrigation systems. Currently, the company manufactures the timer unit used in each of its systems. Based on an annual production of 50,000 timers, the company has calculated the following unit costs. Direct fixed costs include supervisory and clerical salaries and equipment depreciation. $13 Direct materials Direct labor Variable manufacturing overhead Direct fixed manufacturing overhead Allocated fixed manufacturing overhead Total unit cost 4 7 (40% salaries, 60% depreciation) 8 Clifton...
Benitez Company currently outsources a relay switch that is a component in one of its products. The switches cost $35 each. The company is considering making the switches internally at the following projected annual production costs: $ $ 7 6 Unit-level material cost Unit-level labor cost Unit-level overhead Batch-level set-up cost (8,000 units per batch) Product-level supervisory salaries Allocated facility-level costs $50,000 $50,000 $45,000 The company expects an annual need for 8,000 switches. If the company makes the product, it...
M and M, Inc produces a product that has a variable cost of $4.50 per unit. The company's fixed costs are $56,000 The product is sold for $8 per unit and the company desires to earn a target praft of $17,500. What is the amount of sales t calculations that will be necessary to earn the desired proft? (Do not round intermediate Benitez Company currently outsources a relay switch that is a component in one of its products. The switches...
Current-Control Inc. manufactures a variety of electrical
switches. The company is currently manufacturing all of its own
component parts. An outside supplier has offered to sell a switch
to Current-Control for $32 per unit. To evaluate this offer,
Current-Control has gathered the following information relating to
its own cost of producing the switch internally:
Per
Unit
12,000 Units
per Year
Direct materials
$ 12
$144,000
Direct labour
10
120,000
Variable manufacturing overhead
3
36,000
Fixed manufacturing overhead, traceable
8*
96,000...
Benson Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,100 containers follows: Unit-level materials Unit-level labor Unit-level overhead Product-level costs* Allocated facility-level costs $ 6,000 6,700 3,700 9,900 26,900 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Benson for $2.50 each. Required a. Calculate the total relevant cost. Should Benson continue to make the containers?...
Adams Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,200 containers follows: Unit-level materials Unit-level labor Unit-level overhead Product-level costs Allocated facility-level costs $ 6,100 6,600 3,400 8.400 28,100 *One-third of these costs can be avoided by purchasing the containers Russo Container Company has offered to sell comparable containers to Adams for $2.60 each. Required a. Calculate the total relevant cost. Should Adams continue to make the containers?...
Stuart Electronics currently produces the shipping containers it
uses to deliver the electronics products it sells. The monthly cost
of producing 9,200 containers follows:
Unit-level materials Unit-level labor Unit-level overhead Product-level costs* Allocated facility-level osts 27,200 $ 6,800 6,400 4,000 11,400 One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Stuart for $2.80 each Required a. Calculate the total relevant cost. Should Stuart continue to make the containers?...
Problem 8-24 Wright Water Co. is a leading producer of greenhouse irrigation systems. Currently, the company manufactures the timer unit used in each of its systems. Based on an annual production of 50,000 timers, the company has calculated the following unit costs. Direct fixed costs include supervisory and clerical salaries and equipment depreciation. $13 Direct materials Direct labor Variable manufacturing overhead Direct fixed manufacturing overhead Allocated fixed manufacturing overhead Total unit cost 4 7 (40% salaries, 60% depreciation) 8 Clifton...
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