Please help me with of this question answer general accounting Cascade Technologies produces 60,000 power adaptors for use in their laptop computers. Thecurrent cost data per adaptor is as follows:Cost ElementDirect materialsDirect laborCost per Unit$8.75$7.60Variable manufacturing overhead $3.25Fixed manufacturing overhead$5.40A new supplier has approached Cascade with an offer to provide equivalent power adaptors for$22.80 each. If Cascade decides to purchase the adaptors externally rather than producing themin-house, none of the fixed manufacturing overhead would be avoidable, and all of the facilitiescurrently used for adaptor production would remain idle. Direct labor at Cascade is entirelyvariable.Required: Calculate the annual financial advantage or disadvantage for Cascade Technologiesas a result of making the power adaptors rather than buying them from the outside supplier.

Step 1: Define Avoidable CostsAvoidable costs are expenses that can be eliminated if a particular…

Answered: Cascade Technologies produces 60,000…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 7EB: Oat Treats manufactures various types of cereal bars featuring oats. Simmons Cereal Company has...

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Blue Spruce Tech produces 60,000 iPhone adapters with the following costs:
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Vishnu
Thornton Electronics currently produces the shipping containers It uses to deliver the electronics products It sells. The monthly cost of producing 9,100 containers follows. Unit-level materials Unit-level labor Unit-level overhead Product-level costs* Allocated facility-level costs $ 5,100 6,400 3,300 9,900 28,000 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Thornton for $2.60 each. Required a. Calculate the total relevant cost. Should Thornton continue to make the containers? b. Thornton could lease the space it currently uses in the manufacturing process. If leasing would produce $12,100 per month, calculate the total avoidable costs. Should Thornton continue to make the containers? a. Total relevant cost a. Should Thornton continue to make the containers? b. Total avoidable cost b. Should Thornton continue to make the containers?

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