a) Calculate the relevant cost to make. Relevant cost to make $_________ per unit (b) Should Outland continue to manufacture the part? yes or no The Outland Company manufactures 5,000 units of a part that could be purchased from an outside supplier for $16 each. Outland’s costs to manufacture each part are as follows: Direct materials $4 Direct labor 3 Variable manufacturing overhead 6 Fixed manufacturing overhead 10 Total $23 All fixed overhead is unavoidable and is allocated based on d
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
(a) Calculate the relevant cost to make. Relevant cost to make $_________ per unit
(b) Should Outland continue to manufacture the part? yes or no
The Outland Company manufactures 5,000 units of a part that could be purchased from an outside supplier for $16 each. Outland’s costs to manufacture each part are as follows:
| Direct materials | $4 | ||
| Direct labor | 3 | ||
| Variable manufacturing overhead | 6 | ||
| Fixed manufacturing overhead | 10 | ||
| Total | $23 |
All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no alternative uses.
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