Homework Answers
Ans :
1). Total cost of making 1800 bindings :
Direct Material. $ 17,510
Direct labour. $ 2,600
Variable O/H . $ 2,030
Relevant Fixed O/H. $ 1,900
-------------------------
Total relevant cost. $ 24,040
If outdoor life buy the bindings $1,900 of fixed overhead will be saved. So, outdoor life should buy the bindings.
2). Alternative (a) Total relevant Cost of making the bindings : $ 24,040
Alternative (b) Total cost of buying bindings and leave facilities idle : $ 24,040 - $ 1,900 = $ 22,140
Alternative (c) Total cost of buying bindings and make another product :
Total cost of buying : $ 22,140
Less : Profit from making another product : $ 2,700
----------------------
Total cost. $ 19,440
Alternative (c) is the best decision.
Add Answer to:
Outdoor Life manufactures snowboards. Its cost of making 1800 bindings as follows: Direct materials-$ 17510 Direct labo...
Outdoor Life Snowboard Mfg. Inc. manufactures snowboards. Its cost of making 23,600 bindings is as follows:...
Outdoor Life Snowboard Mfg. Inc. manufactures snowboards. Its
cost of making 23,600 bindings is as follows:
Suppose Top notch will sell bindings to Outdoor Lifefor$15each.
Out door Life will pay$1.00per unit to transport the bindings to
its manufacturing plant, where it will add its own logo at a cost
of$0.20 per binding.
Requirement 1. Outdoor Life's accountants predict that
purchasing the bindings from Topnotch will enable the company to
avoid $2,200 of fixed overhead. Prepare an analysis to show whether...
Outdoor Life manufactures showboards its cost of making 100 bindings s oos Click the icon to...
Outdoor Life manufactures showboards its cost of making 100 bindings s oos Click the icon to view the costs) Suppose Lewis will sell bindings to Outdoor Life for $13 each Oudoor de would pay Read the requirements per and to transport the bindings to its mancung where it would add is own cost of $060 percig Requirement 1. Outdoor Life's accountants predict that purchasing the indstromos able the company to $1000 ved over P relevant costs for the terone com...
Outdoor Fun manufactures snowboards. Its cost of making 24,900 bindings is as follows: E: (Click the...
Outdoor Fun manufactures snowboards. Its cost of making 24,900 bindings is as follows: E: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Outdoor Fun for $14 each. Outdoor Fun will pay $1.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.30 per binding. Read the requirements. Data Table Direct materials ............. $ Direct labor Variable manufacturing overhead Fixed manufacturing overhead...
Question 5: Cool Boards manufactures snowboards. Its cost of making 1,900 bindings is as follows: Direct...
Question 5: Cool Boards manufactures snowboards. Its cost of making 1,900 bindings is as follows: Direct materials 17,570 Direct labor Variable overhead 3,300 2,040 6,900 Fixed overhead $ 29,810 Total manufacturing costs for 1,900 bindings Suppose Topnotch will sell bindings to Cool Boards for $13 each. Cool Boards would pay $2 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.60 per binding - Requirements 1. Cool Boards'...
X−Perience manufactures snowboards. Its cost of making 1,900 bindings is as follows: Direct materials $17,540 Direct...
X−Perience manufactures snowboards. Its cost of making 1,900 bindings is as follows: Direct materials $17,540 Direct labor 3,300 Variable overhead 2,110 Fixed overhead 6,500 Total manufacturing costs for 1,900 bindings $29,450 Suppose Witherspoon will sell bindings to X−Perience for $ 13 each. X−Perience would pay $ 3 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.50 per binding. Requirement 1. X−Perience's accountants predict that purchasing the bindings...
Mountain Fun manufactures snowboards. Its cost of making 19,000 bindings is as follows: E (Click the...
Mountain Fun manufactures snowboards. Its cost of making 19,000 bindings is as follows: E (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Mountain Fun for $17 each. Mountain Fun will pay $3.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.40 per binding. Read the requirements. Requirement 1. Mountain Fun's accountants predict that purchasing the bindings from the outside supplier...
Cool BoardsCool Boards manufactures snowboards. Its cost of making 2,000 bindings is as follows: LOADING... (Click...
Cool BoardsCool Boards manufactures snowboards. Its cost of making 2,000 bindings is as follows: LOADING... (Click the icon to view the costs.)Suppose HemingwayHemingway will sell bindings to Cool BoardsCool Boards for $14 each. Cool BoardsCool Boards would pay $1 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.60 per binding.Read the requirements LOADING... .Requirement 1. Cool Boards'Cool Boards' accountants predict that purchasing the bindings from Hemingway will...
Cool Boards manufactures snowboards. Its cost of making 1,900 bindings is as follows: Suppose Topnotch wilt sell bindin...
Cool Boards manufactures snowboards. Its cost of making 1,900
bindings is as follows:
Suppose Topnotch wilt sell bindings to Cool Boards tor $13 each
Cool Boards would pay $2 per unit to transport the bindings to its
manufacturing plan, where it would add its own logo at a cost of
$0.60 per binding
Requirements:
1.Cool Boards' accountants predict that purchasing the bindings
from Topnotch will anode the company to avoid $2,100 or fixed
overhead. Prepare an analysis to show whether...
Cool Boards manufactures snowboards. Its cost of making 19,000 bindings is as follows: (Click the icon...
Cool Boards manufactures snowboards. Its cost of making 19,000 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Cool Boards for $11 each. Cool Boards will pay $3.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.30 per binding. Read the requirements Requirement 1. Cool Boards' accountants predict that purchasing the bindings from the outside supplier will...
Mountain Fun manufactures snowboards. Its cost of making 23,600 bindings is as follows: (Click the icon...
Mountain Fun manufactures snowboards. Its cost of making 23,600 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Mountain Fun for $13 each Mountain Fun will pay $1.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.20 per binding. Read the requirements boards - X S.) Data Table spor ell bind o at a Utrect materials Direct...
Outdoor Life Snowboard Mfg. Inc. manufactures snowboards. Its
cost of making 23,600 bindings is as follows:
Suppose Top notch will sell bindings to Outdoor Lifefor$15each.
Out door Life will pay$1.00per unit to transport the bindings to
its manufacturing plant, where it will add its own logo at a cost
of$0.20 per binding.
Requirement 1. Outdoor Life's accountants predict that
purchasing the bindings from Topnotch will enable the company to
avoid $2,200 of fixed overhead. Prepare an analysis to show whether...
Outdoor Life manufactures showboards its cost of making 100 bindings s oos Click the icon to view the costs) Suppose Lewis will sell bindings to Outdoor Life for $13 each Oudoor de would pay Read the requirements per and to transport the bindings to its mancung where it would add is own cost of $060 percig Requirement 1. Outdoor Life's accountants predict that purchasing the indstromos able the company to $1000 ved over P relevant costs for the terone com...
Outdoor Fun manufactures snowboards. Its cost of making 24,900 bindings is as follows: E: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Outdoor Fun for $14 each. Outdoor Fun will pay $1.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.30 per binding. Read the requirements. Data Table Direct materials ............. $ Direct labor Variable manufacturing overhead Fixed manufacturing overhead...
Question 5: Cool Boards manufactures snowboards. Its cost of making 1,900 bindings is as follows: Direct materials 17,570 Direct labor Variable overhead 3,300 2,040 6,900 Fixed overhead $ 29,810 Total manufacturing costs for 1,900 bindings Suppose Topnotch will sell bindings to Cool Boards for $13 each. Cool Boards would pay $2 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.60 per binding - Requirements 1. Cool Boards'...
Mountain Fun manufactures snowboards. Its cost of making 19,000 bindings is as follows: E (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Mountain Fun for $17 each. Mountain Fun will pay $3.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.40 per binding. Read the requirements. Requirement 1. Mountain Fun's accountants predict that purchasing the bindings from the outside supplier...
Cool Boards manufactures snowboards. Its cost of making 1,900
bindings is as follows:
Suppose Topnotch wilt sell bindings to Cool Boards tor $13 each
Cool Boards would pay $2 per unit to transport the bindings to its
manufacturing plan, where it would add its own logo at a cost of
$0.60 per binding
Requirements:
1.Cool Boards' accountants predict that purchasing the bindings
from Topnotch will anode the company to avoid $2,100 or fixed
overhead. Prepare an analysis to show whether...
Cool Boards manufactures snowboards. Its cost of making 19,000 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Cool Boards for $11 each. Cool Boards will pay $3.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.30 per binding. Read the requirements Requirement 1. Cool Boards' accountants predict that purchasing the bindings from the outside supplier will...
Mountain Fun manufactures snowboards. Its cost of making 23,600 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Mountain Fun for $13 each Mountain Fun will pay $1.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.20 per binding. Read the requirements boards - X S.) Data Table spor ell bind o at a Utrect materials Direct...
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