C Direct materials 1 2 Direct labor 3 Variable MOH Fixed MOH 560,000 105,000 70,000 455,000 1,190,000 4 5 Total manufacturing cost for 70,000 units 6.
C Direct materials 1 2 Direct labor 3 Variable MOH Fixed MOH 560,000 105,000 70,000 455,000 1,190,000 4 5 Total manufacturing cost for 70,000 units 6.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
InteliSystems needs 79,000 optical switches next year . By outsourcing them, InteliSystems can use its idle facilities to manufacture another product that will contribute $140,000 to operating income, but none of the fixed costs will be avoidable. Should InteliSystems make or buy the switches? Show your analysis based on the information in the table below for making 70,000 switches.

Transcribed Image Text:A
В
C
Direct materials
1
2 Direct labor
3 Variable MOH
4 Fixed MOH
5 Total manufacturing cost for 70,000 units
6.
560,000
105,000
70,000
455,000
1,190,000
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