Homework Answers
| Direct Materials | 116000 |
| Direct labor | 21000 |
| Variable overhead | 47000 |
| Avoidable Fixed overhead | 20000 |
| Maximum amount to be paid | 204000 |
| Option B $204000 is correct |
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Multiple Choice Question 99 Oriole's Manufacturing Company can make Direct Materials Direct Labor Variable Overhead Fixed...
Oriole's Manufacturing Company can make 100 units of a necessary component part with the following costs:...
Oriole's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $116000 21000 47000 30000 If Oriole's Manufacturing Company can purchase the component externally for $185000 and only $7000 of the fixed costs can be avoided, what is the correct make-or-buy decision? O Buy and save $6000 O Make and save $6000 O Buy and save $18000 o Make and save $18000
Multiple Cholce Question 100 Marigold's Manufacturing Company can make 100 units of a necessary component part...
Multiple Cholce Question 100 Marigold's Manufacturing Company can make 100 units of a necessary component part with the following costs Direct Materials $111000 Direct Labor 16000 Variable Overhead 17000 Fred Overhead 30000 If Marigold's Manufacturing Company can purchase the component externally for $165000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision? O Buy and save $8000 O Make and save $3000 O Buy and save $3000 O Make and save $3000 Click...
Sheridan's Manufacturing Company can make 100 units of a necessary component part with the following costs:...
Sheridan's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $112000 17000 39000 30000 If Sheridan's Manufacturing Company can purchase the component externally for $170000 and only $6000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Make and save $11000 Make and save $4000 Buy and save $4000 Buy and save $11000
Coronado’s Manufacturing Company can make 100 units of a necessary component part with the following costs:...
Coronado’s Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $120000 Direct Labor 23000 Variable Overhead 54000 Fixed Overhead 30000 If Coronado’s Manufacturing Company can purchase the component externally for $195000 and only $7000 of the fixed costs can be avoided, what is the correct make-or-buy decision? a. Make and save $22000 b. Buy and save $9000 c. Buy and save $22000 d. Make and save $9000
Marigold Corp. can produce 100 units of a component part with the following costs: Direct Materials...
Marigold Corp. can produce 100 units of a component part with the following costs: Direct Materials $20000 Direct Labor 4500 Variable Overhead 18000 Fixed Overhead 11000 If Marigold Corp. can purchase the component part externally for $47000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision? a. Buy and save $2500 b. Make and save $500 c. Make and save $2500 d. Buy and save $4500
Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs:...
Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials Direct Labor $120,000 25,000 Variable Overhead 45,000 Fixed Overhead 30,000 If Tex's Manufacturing Company can purchase the component externally for $190,000 and only $5,000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Buy and save $5,000 Make and save $5,000 Make and save $15,000 Buy and save $15,000
Vaughn Manufacturing can produce 100 units of a component part with the following costs: Direct Materials...
Vaughn Manufacturing can produce 100 units of a component part with the following costs: Direct Materials $14000 Direct Labor 5500 Variable Overhead 9000 Fixed Overhead 11000 If Vaughn Manufacturing can purchase the component part externally for $35000 and only $4000 of the fixed costs can be avoided, what is the correct make- or-buy decision? Make and save $500 Buy and save $500 OMake and save $2500 Buy and save $6500 Sunland Music produces 60000 CDs on which to record music....
Sheridan Company can produce 100 units of a component part with the following costs: Direct Materials...
Sheridan Company can produce 100 units of a component part with the following costs: Direct Materials $9000 Direct Labor 7500 Variable Overhead 10000 Fixed Overhead 11000 If Sheridan Company can purchase the units externally for $30000, by what amount will its total costs change? An increase of $1500 An increase of $3500 A decrease of $11000 An increase of $30000
19. Marathon Manufacturing Company can make 10,000 units of a necessary component part with the following...
19. Marathon Manufacturing Company can make 10,000 units of a necessary component part with the following costs per unit: Direct Materials $15 Direct Labor Variable Overhead Fixed Overhead Product cost per unit $55 Marathon Manufacturing Company can purchase the component externally for $38 per unit. Only 25% of the total fixed costs can be avoided. What is the correct make-or-buy decision in order to maximize net income? a. Make and save $12,000 6 Buy and save $12,000 C. Make and...
Waterway's Shop can make 1000 units of a necessary component with the following costs: Direct Materials...
Waterway's Shop can make 1000 units of a necessary component with the following costs: Direct Materials $40000 Direct Labor 6000 Variable Overhead 3000 Fixed Overhead The company can purchase the 1000 units externally for $55000. The unavoidable fixed costs are $2000 if the units are purchased externally. An analysis shows that at this external price, the company is indifferent between making or buying the part. What are the fixed overhead costs of making the component? $6000 $8000 $4000 Cannot be...
Oriole's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $116000 21000 47000 30000 If Oriole's Manufacturing Company can purchase the component externally for $185000 and only $7000 of the fixed costs can be avoided, what is the correct make-or-buy decision? O Buy and save $6000 O Make and save $6000 O Buy and save $18000 o Make and save $18000
Multiple Cholce Question 100 Marigold's Manufacturing Company can make 100 units of a necessary component part with the following costs Direct Materials $111000 Direct Labor 16000 Variable Overhead 17000 Fred Overhead 30000 If Marigold's Manufacturing Company can purchase the component externally for $165000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision? O Buy and save $8000 O Make and save $3000 O Buy and save $3000 O Make and save $3000 Click...
Sheridan's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $112000 17000 39000 30000 If Sheridan's Manufacturing Company can purchase the component externally for $170000 and only $6000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Make and save $11000 Make and save $4000 Buy and save $4000 Buy and save $11000
Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials Direct Labor $120,000 25,000 Variable Overhead 45,000 Fixed Overhead 30,000 If Tex's Manufacturing Company can purchase the component externally for $190,000 and only $5,000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Buy and save $5,000 Make and save $5,000 Make and save $15,000 Buy and save $15,000
Vaughn Manufacturing can produce 100 units of a component part with the following costs: Direct Materials $14000 Direct Labor 5500 Variable Overhead 9000 Fixed Overhead 11000 If Vaughn Manufacturing can purchase the component part externally for $35000 and only $4000 of the fixed costs can be avoided, what is the correct make- or-buy decision? Make and save $500 Buy and save $500 OMake and save $2500 Buy and save $6500 Sunland Music produces 60000 CDs on which to record music....
19. Marathon Manufacturing Company can make 10,000 units of a necessary component part with the following costs per unit: Direct Materials $15 Direct Labor Variable Overhead Fixed Overhead Product cost per unit $55 Marathon Manufacturing Company can purchase the component externally for $38 per unit. Only 25% of the total fixed costs can be avoided. What is the correct make-or-buy decision in order to maximize net income? a. Make and save $12,000 6 Buy and save $12,000 C. Make and...
Waterway's Shop can make 1000 units of a necessary component with the following costs: Direct Materials $40000 Direct Labor 6000 Variable Overhead 3000 Fixed Overhead The company can purchase the 1000 units externally for $55000. The unavoidable fixed costs are $2000 if the units are purchased externally. An analysis shows that at this external price, the company is indifferent between making or buying the part. What are the fixed overhead costs of making the component? $6000 $8000 $4000 Cannot be...
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