Al Maha Co. produces 1,200 units of petroleum with direct materials costs of RO 32,000, Direct Labor costs of RO 12,000, Variable Overhead costs of RO 25,000 and Fixed Overhead costs of RO 22,000. Omanoil Co. offers to produce the units of petroleum at RO 72 per unit. (Make or Buy Decision) The cost to buy the petroleum is: Select one: O a. 12,0000 O b. 69,000 O . 80,000 O d. None of the answers are correct O e. 86,400

Al Maha Co. produces 1,200 units of petroleum with direct materials costs of RO 32,000, Direct Labor costs of RO 12,000, Variable Overhead costs of RO 25,000 and Fixed Overhead costs of RO 22,000. Omanoil Co. offers to produce the units of petroleum at RO 72 per unit. (Make or Buy Decision) The cost to buy the petroleum is: Select one: O a. 12,0000 O b. 69,000 O . 80,000 O d. None of the answers are correct O e. 86,400

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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Al Maha Co. produces 1,200 units of petroleum with direct materials costs of OMR 32,000, Direct Labor costs of OMR 12,000, Variable Overhead costs of OMR 25,000 and Fixed Overhead costs of OMR 22,000. Oman oil Co. offers to produce the units of petroleum at OMR 72 per unit. (Make or Buy Decision) The cost to make the petroleum is: Select one: O a. None of the answers are correct O b. 80,000 O c. 69,000 O d. 84,000 O e. 12,0000 ENG 07:35 INTL 25/05/2021
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