2. A company is contemplating whether to accept a new project which requires the following three types of labour Hours Additional information required existing staff are fully utilized. The c a company will hire Carpentry 12,500 Paid at $8 per hour and er new staff to meet this additional demand. Masonry 2,200 Paid at $12 per hour. These employees are difficult to recruit and the company retains a number of permanently employed staff, even if there is no work to do. There is currently 800 hours of idle time available and any additional hours would be fulfilled by temporary staff that would be paid at $14/hour.

2. A company is contemplating whether to accept a new project which requires the following three types of labour Hours Additional information required existing staff are fully utilized. The c a company will hire Carpentry 12,500 Paid at $8 per hour and er new staff to meet this additional demand. Masonry 2,200 Paid at $12 per hour. These employees are difficult to recruit and the company retains a number of permanently employed staff, even if there is no work to do. There is currently 800 hours of idle time available and any additional hours would be fulfilled by temporary staff that would be paid at $14/hour.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information (The following information applies to the questions displayed below} Each of the following situations is independent: Make vs. Buy (Sourcing Decision) Eggers Company needs 27,000 units of a part to use in producing one of its products. If Eggers buys the part from McMillan Company for $110 instead of making it, Eggers will not use the released facilities in another manufacturing activity. Forty percent of the fixed overhead will continue irrespective of CEO Donald Mickey's decision. The cost data are as follows: Cost to make the part: Direct materials $ 42 18 26 30 Direct labor Variable overhead Fixed overhead $116 Required: 1. Determine which alternative is more attractive to Eggers, and by what amount. Alternative Saving Make the part per unit
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Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Ken Owens Construction specializes in small additions and repairs. His normal charge is $500/day plus materials. Due to his physical condition, David, an elderly gentleman, needs a downstairs room converted to a bathroom. Ken has produced a bid for $5,000 to complete the bathroom. He did not provide David with the details of the bid. However, they are shown here. Ken's Bid Detail Dollars Direct Material $2,100 Direct Labor 1,700 Variable overhead 100 Fixed overhead 700 Profit 400 $5,000 A. The town's social services has asked Ken if he could reduce his bid to $3,900. Should Ken accept the counter offer? Current Bid New Bid Direct Material $2,100 $2,100 Direct Labor 1,700 1,700 Variable overhead 100 100 Fixed overhead 700 Profit 400 $5,000 $3,900 No v B. How much would his income be reduced? C. If the town's social services guaranteed him another job next month at his normal price, could he accept this job at $3,900? Yes v Feedback
5. Ken Owens Construction specializes in small additions and repairs. His normal charge is $400/day plus materials. Due to his physical condition, David, an elderly gentleman, needs a downstairs room converted to a bathroom. Ken has produced a bid for $5000 to complete the bathroom. He did not provide David with the details of the bid. However, they are shown here. Chapter 10 Homework Ken's Bid Detail Dollars Direct material Direct labor Variable overhead Fixed overhead Profit $2,200 1,600 200 600 400 $5,000 A. The town's social services has asked Ken if he could reduce his bid to $4,000 Should Ken accept the counter offer? Current Bid New Bid Direct material Direct labor $2,200 $2,200 1,600 1,600 Variable overhead Fixed overhead Profit 200 200 600 400 $5,000 $4,000 B. How much would his income be reduced? C. If the town's social services guaranteed him another job next month at his normal price, could he accept this job at $4,000?
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Please give solution in correct and step by step detailed format thanku Don't give solution in image format A firm makes and sells a bed cover. The firm sells the bed covers for $150 each and incurs $525,000 of fixed costs each year. To make each cover requires $45 of direct materials and 0.75 direct labor hours. The firm pays its highly skilled workers $60 per hour and variable overhead is applied at the rate of $20 per direct labor hour. This past year 25,000 covers were sold, and the firm is evaluating what effect a change in sales volume would have on its contribution margin. What change in contribution margin should the firm experience if it increased sales by 10,000 units and fixed costs rose by $50,000 over the last year?