cases, and so on, comacea coram ano proposed that they produce the neauprione traver cases paseu on management experience, Coram's cost per travel case is as follows (based on annual production of 41,800 units) Direct naterials Direct labor Variable overhead Fixed overhead Total HTG has offered to sell the case to Coram for $39 each. The total order would amount to 41,800 travel cases per year. Coram's management decides that they will make the switch to HTG cases if Coram can save at least $12.900 per year. Accepting the offer would eliminate annual fixed overhead of $79,420 Required: a. Prepare a schedule that shows the total differential costs. b. Should Coram continue to make the travel cases or buy them from HTG? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A $10.00 21.20 6.40 4.70 $42.30 Required b HTG's offer Materials Prepare a schedule that shows the total differential costs. (Select option higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Labor Vanable overhead Fixed overhead applied Total costs Status Que 418,000 886,160 267,520 O 196,460 1,768 140 Alternative $1,632.000 O 00 200 00 79,420 O $ 1.711,420 Raque Difference Required >
cases, and so on, comacea coram ano proposed that they produce the neauprione traver cases paseu on management experience, Coram's cost per travel case is as follows (based on annual production of 41,800 units) Direct naterials Direct labor Variable overhead Fixed overhead Total HTG has offered to sell the case to Coram for $39 each. The total order would amount to 41,800 travel cases per year. Coram's management decides that they will make the switch to HTG cases if Coram can save at least $12.900 per year. Accepting the offer would eliminate annual fixed overhead of $79,420 Required: a. Prepare a schedule that shows the total differential costs. b. Should Coram continue to make the travel cases or buy them from HTG? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A $10.00 21.20 6.40 4.70 $42.30 Required b HTG's offer Materials Prepare a schedule that shows the total differential costs. (Select option higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Labor Vanable overhead Fixed overhead applied Total costs Status Que 418,000 886,160 267,520 O 196,460 1,768 140 Alternative $1,632.000 O 00 200 00 79,420 O $ 1.711,420 Raque Difference Required >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
savita
Transcribed Image Text:cases, and so on, comacea coram ano proposed that they produce the neaupnione traver cases, naseu on management experience,
Coram's cost per travel case is as follows (based on annual production of 41,800 units)
Direct materials
Direct labor
Variable overhead
Fixed overbead
Total
$10.00
21.20
6.40
4.70
$42.30
HTG has offered to sell the case to Coram for $39 each. The total order would amount to 41,800 travel cases per year. Coram's
management decides that they will make the switch to HTG cases if Coram can save at least $12,900 per year. Accepting the offer
would eliminate annual fixed overhead of $79,420
Required:
a. Prepare a schedule that shows the total differential costs.
b. Should Coram continue to make the travel cases or buy them from HTG?
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required A
Required b
Prepare a schedule that shows the total differential costs.(Select option higher" or "lower", keeping Status Quo as the base.
Select "none" if there is no effect.)
HTG's offer
Materials
Labor
Vanable overhead
Fixed overhead applied
Total costs
Status
Que
418.000
886,160
267,520 O
190,460
1,768,140
Alternative
$1,632.000 O
00
200
00
79,420 Ⓒ
$ 1.711,420
< Bagus A
Difference
Required B >
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