Coronado Industries currently manufactures a wicket as its main product. The costs per unit are as follows: Direct mater...
Coronado Industries currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $14 Variable overhead 5 Fixed overhead 8 Total $27 Saran Company has contacted Coronado with an offer to sell it 6300 of the wickets for $21 each. If Coronado makes the wickets, variable costs are $19 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Coronado make or buy the wickets? Make; savings = $12600 Buy; savings = $6300 Buy; savings = $18900 Make; savings = $6300
Homework Answers
Correct answer---------Buy; savings = $6300
Working
| Differential Analysis | ||
| Make | Buy | |
| Direct material and labor | $ 88,200 | |
| Variable Overheads | $ 31,500 | |
| Fixed overhead | $ 18,900 | |
| Purchase price | $ 132,300 | |
| Total relevant Cost | $ 138,600 | $ 132,300 |
.
| Total Cost of Buying | $ 132,300 |
| Total Cost of manufacturing | $ 138,600 |
| Financial advantage of buying | $ 6,300 |
Add Answer to:
Coronado Industries currently manufactures a wicket as its main product. The costs per unit are as follows: Direct mater...
Swifty Corporation currently manufactures a wicket as its main product. The costs per unit are as...
Swifty Corporation currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $10 Variable overhead Fixed overhead Saran Company has contacted Swifty with an offer to sell t 5300 of the wickets for $17 each. Ifswifty makes the wickets, variable costs are字15 per unit. Fixed costs ar e $8 per unit; however, $5 per unit is unavoidable. 5houd S y make or buy the wickets? O Make: savings $10600 Buy:...
Multiple Choice Question 91 Sheridan Company currently manufactures a wicket as its main product. The costs...
Multiple Choice Question 91 Sheridan Company currently manufactures a wicket as its main product. The costs per unit are as follows: $9 Direct materials and direct labor Variable overhead Fixed overhead Total $22 Saran Company has contacted Sheridan with an offer to sell it 3300 of the wickets for $16 each. If Sheridan makes the wickets, variable costs are $14 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Sheridan make or buy the...
Multiple Choice Question 91 Waterway, Inc. currently manufactures a wicket as its main product. The costs...
Multiple Choice Question 91 Waterway, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $16 Variable overhead Fixed overhead 8 $29 Total Saran Company has contacted Waterway with an offer to sell it 4700 of the wickets for $23 each. If Waterway makes the wickets, variable costs are $21 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoi dable. Should Waterway make or...
Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are...
Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials $54.00 Direct labor 35.00 Variable overhead 40.00 Fixed overhead 34.00 Total $163.00 Crayola Technologies Inc. has contacted Rubium with an offer to sell 6,000 of the subassemblies for $144.00 each. Rubium will eliminate $89,000 of fixed overhead if it accepts the proposal. Should Rubium make or buy the subassemblies? What is the difference between the two alternatives? Make; savings =...
Make or Buy Smith Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials $ 1 Direct labor ...
Make or Buy Smith Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials $ 1 Direct labor 10 Variable overhead 5 Fixed overhead 8 Total $24 Funkhouser Company has contacted Smith with an offer to sell it 5,000 of the subassemblies for $20 each. If Funkhouser makes the subassemblies, $5 of the fixed overhead per unit will be allocated to other products. Required: a. Should Smith make or buy the subassemblies?...
Bridgeport Corporation currently manufactures a subassembly for its main product. The costs per unit are as...
Bridgeport Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials $ 3.80 Direct labour 27.80 Variable overhead 16.20 Fixed overhead 26.90 Total $ 74.70 Regina Corp. has contacted Bridgeport with an offer to sell it 5,100 subassemblies for $54.20 each. Should Bridgeport make or buy the subassemblies? Create a schedule that shows the total quantitative differences between the two alternatives. Cost to make: Cost to buy: The accountant decides to investigate...
Flint Corporation currently manufactures a subassembly for its main product. The costs per unit are as...
Flint Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials Direct labour Variable overhead Fixed overhead Total $ 3.50 28.00 14.10 24.30 $69.90 Regina Corp. has contacted Flint with an offer to sell it 5,100 subassemblies for $51.90 each. Should Flint make or buy the subassemblies? Create a schedule that shows the total quantitative differences between the two alternatives. (Round all entries to 2 decimal places, e.g. 1.25.) Cost to make...
Sage Corporation currently manufactures a subassembly for its main product. The costs per unit are as...
Sage Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials Direct labour Variable overhead Fixed overhead Total $ 3.70 27.80 14.10 26.10 $71.70 Regina Corp. has contacted Sage with an offer to sell it 5,100 subassemblies for $52.10 each. Your answer is correct. Should Sage make or buy the subassemblies? Create a schedule that shows the total quantitative differences between the two alternatives. (Round all entries to 2 decimal places, e.g....
Goof-E Corporation currently manufactures a subassembly for its main product. The costs per unit are as...
Goof-E Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials $3.40 Direct labour $29.80 Variable overhead $16.10 Fixed overhead $25.20 Total costs $74.50 Mouse Corp. has contacted Goof-E with an offer to sell it 4,700 subassemblies for $55.20 each. Should Goof-E make or buy the subassemblies? Create a schedule that shows the total quantitative differences between the two alternatives. What are two qualitative things Goof-E should consider when considering this offer?...
Foro Como company incurs $480,000 overhead cos erhead costs each year in its three main departments,...
Foro Como company incurs $480,000 overhead cos erhead costs each year in its three main departments, setup ($30,000)machining ($330,000). and packing ($120,000). The setup dep performs 40 setups per year, the machining department works 5,000 hours per the packing department packs 500 orders per year. Information about is as follows: ww orders per year. Information about Foxx's two products works 5,000 hours per year, and Number of setups Machining hours Orders packed Number of products manufactured Product A1 20 1,000...
Swifty Corporation currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $10 Variable overhead Fixed overhead Saran Company has contacted Swifty with an offer to sell t 5300 of the wickets for $17 each. Ifswifty makes the wickets, variable costs are字15 per unit. Fixed costs ar e $8 per unit; however, $5 per unit is unavoidable. 5houd S y make or buy the wickets? O Make: savings $10600 Buy:...
Multiple Choice Question 91 Sheridan Company currently manufactures a wicket as its main product. The costs per unit are as follows: $9 Direct materials and direct labor Variable overhead Fixed overhead Total $22 Saran Company has contacted Sheridan with an offer to sell it 3300 of the wickets for $16 each. If Sheridan makes the wickets, variable costs are $14 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Sheridan make or buy the...
Multiple Choice Question 91 Waterway, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $16 Variable overhead Fixed overhead 8 $29 Total Saran Company has contacted Waterway with an offer to sell it 4700 of the wickets for $23 each. If Waterway makes the wickets, variable costs are $21 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoi dable. Should Waterway make or...
Flint Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials Direct labour Variable overhead Fixed overhead Total $ 3.50 28.00 14.10 24.30 $69.90 Regina Corp. has contacted Flint with an offer to sell it 5,100 subassemblies for $51.90 each. Should Flint make or buy the subassemblies? Create a schedule that shows the total quantitative differences between the two alternatives. (Round all entries to 2 decimal places, e.g. 1.25.) Cost to make...
Sage Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials Direct labour Variable overhead Fixed overhead Total $ 3.70 27.80 14.10 26.10 $71.70 Regina Corp. has contacted Sage with an offer to sell it 5,100 subassemblies for $52.10 each. Your answer is correct. Should Sage make or buy the subassemblies? Create a schedule that shows the total quantitative differences between the two alternatives. (Round all entries to 2 decimal places, e.g....
Foro Como company incurs $480,000 overhead cos erhead costs each year in its three main departments, setup ($30,000)machining ($330,000). and packing ($120,000). The setup dep performs 40 setups per year, the machining department works 5,000 hours per the packing department packs 500 orders per year. Information about is as follows: ww orders per year. Information about Foxx's two products works 5,000 hours per year, and Number of setups Machining hours Orders packed Number of products manufactured Product A1 20 1,000...
Most questions answered within 3 hours.
-
Calculate and plot the number and weight distributions of x-mers
found in a step-growth polymerization for...
asked 6 minutes ago -
The Baily Corporation has developed a specialized software
program that improves inventory control capability. The following...
asked 10 minutes ago -
Problem 5-4A (Part Level Submission) Wolford Department Store is
located in midtown Metropolis. During the past...
asked 10 minutes ago -
Preparation of Benzoic Acid using a Grignard Reagent URGENT
1. During your Grignard formation, a small...
asked 33 minutes ago -
A uniform magnetic field is perpendicular to the plane of a wire
loop. If the loop...
asked 32 minutes ago -
At the peak of your career, your were earning $120,000 and
holding a top level position....
asked 35 minutes ago -
. A permanent magnet is dropped south-end-down through a horizontal
circular coil with a radius of...
asked 37 minutes ago -
Bernie's Beverages purchased some fixed assets classified as
5-year property for MACRS. The assets cost $28,000....
asked 51 minutes ago -
How many ATPs are produced from the catabolism of a 10-C
molecule of fatty acid under...
asked 56 minutes ago -
Before practicing a routine on the rings, a 64.8 kg gymnast
hangs motionless, with one hand...
asked 57 minutes ago -
If the K b of a weak base is 6.3 × 10 − 6 , what...
asked 1 hour ago -
Which of the following is the minimum amount of moles of NaOH
that must be added...
asked 1 hour ago