Please help me Crane Company must decide whether to make or buy some of its components. The costs of producing 64,800 switches for itsgenerators are as follows.Direct materialsDirect labor(a)Instead of making the switches at an average cost of $2.98 ($193,104+64,800), the company has an opportunity to buy the switchesat $2.71 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated.$30,300 Variable overhead$33,504Fixed overheadDirect materialsPrepare an incremental analysis showing whether the company should make or buy the switches. (Enter negative amounts usingeither a negative sign preceding the number eg. -45 or parentheses eg. (45))Direct laborVariable manufacturing costs$45,700$83,600$Make000$Buy100$Net IncomeIncrease (Decrease)

Incremental Analysis: This analysis shows the comparison between two different alternatives.…

Crane Company must decide whether to make or buy some of its components. The costs of producing 64,800 switches for its generators are as follows. Direct materials Direct labor (a) Instead of making the switches at an average cost of $2.98 ($193,104-64,800), the company has an opportunity to buy the switches at $2.71 per unit. If the company purchases the switches, all the variable costs and one-fourth of the foxed costs will be eliminated. $30,300 Variable overhead $33,504 Fixed overhead Direct materials Prepare an incremental analysis showing whether the company should make or buy the switches. (Enter negative amounts using either a negative sign preceding the number eg -45 or parentheses eg (45)) Direct labor $45,700 $83,600 Variable manufacturing costs Make 000 Buy Net Income Increase (Decrease)

Crane Company must decide whether to make or buy some of its components. The costs of producing 64,800 switches for its generators are as follows. Direct materials Direct labor (a) Instead of making the switches at an average cost of $2.98 ($193,104-64,800), the company has an opportunity to buy the switches at $2.71 per unit. If the company purchases the switches, all the variable costs and one-fourth of the foxed costs will be eliminated. $30,300 Variable overhead $33,504 Fixed overhead Direct materials Prepare an incremental analysis showing whether the company should make or buy the switches. (Enter negative amounts using either a negative sign preceding the number eg -45 or parentheses eg (45)) Direct labor $45,700 $83,600 Variable manufacturing costs Make 000 Buy Net Income Increase (Decrease)

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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