(c-d) Your answer is partially correct. (c) If Flounder could lease the manufacturing facilities to another company for $ 24,300 per year, what would be the net total cost to outsource production of the part? Net cost to buy $
(c-d) Your answer is partially correct. (c) If Flounder could lease the manufacturing facilities to another company for $ 24,300 per year, what would be the net total cost to outsource production of the part? Net cost to buy $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Part C
![(c-d)
Your answer is partially correct.
(c) If Flounder could lease the manufacturing facilities to another company for $ 24,300 per year, what would be the net total cost
to outsource production of the part?
Net cost to buy $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1ee39943-27de-4ef0-ba6e-37858b28aee7%2F486fcb98-d427-42bb-89af-4d0abd33c90d%2Fdzjrfmp_processed.png&w=3840&q=75)
Transcribed Image Text:(c-d)
Your answer is partially correct.
(c) If Flounder could lease the manufacturing facilities to another company for $ 24,300 per year, what would be the net total cost
to outsource production of the part?
Net cost to buy $
![The Flounder Company manufactures 4,300 units of a part that could be purchased from an outside supplier for $ 16 each. Flounder's
costs to manufacture each part are as follows:
Direct materials
$ 4
Direct labor
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.
(a-b)
Your answer is correct.
(a) Calculate relevant cost to make.
Relevent cost to make $
13
per unit
(b) Should Flounder continue to manufacture the part?
Yes](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1ee39943-27de-4ef0-ba6e-37858b28aee7%2F486fcb98-d427-42bb-89af-4d0abd33c90d%2F1xymw2c_processed.png&w=3840&q=75)
Transcribed Image Text:The Flounder Company manufactures 4,300 units of a part that could be purchased from an outside supplier for $ 16 each. Flounder's
costs to manufacture each part are as follows:
Direct materials
$ 4
Direct labor
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.
(a-b)
Your answer is correct.
(a) Calculate relevant cost to make.
Relevent cost to make $
13
per unit
(b) Should Flounder continue to manufacture the part?
Yes
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education