Cullumber Company manufactured 5,040 units of a component part that is used in its product and incurred the following costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $29,400 12,600 8,400 16,800 $67,200 Another company has offered to sell the same component part to the company for $13 per unit. The fixed manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would not be reduced if the component part was purchased from the outside firm. If the component part is purchased from the outside firm, Cullumber Company has the opportunity to use the factory equipment to produce another product which is estimated to have a contribution margin of $18,480. Prepare an incremental analysis report for Cullumber Company which can serve as informational input into this make or buy decision. (Enter negative amounts using either a negative sign preceding the number eg -45 or parentheses eg. (45). Do not leave any field blank. Enter O for the amounts)

Cullumber Company manufactured 5,040 units of a component part that is used in its product and incurred the following costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $29,400 12,600 8,400 16,800 $67,200 Another company has offered to sell the same component part to the company for $13 per unit. The fixed manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would not be reduced if the component part was purchased from the outside firm. If the component part is purchased from the outside firm, Cullumber Company has the opportunity to use the factory equipment to produce another product which is estimated to have a contribution margin of $18,480. Prepare an incremental analysis report for Cullumber Company which can serve as informational input into this make or buy decision. (Enter negative amounts using either a negative sign preceding the number eg -45 or parentheses eg. (45). Do not leave any field blank. Enter O for the amounts)

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Description: Please do not give solution in image format thanku Cullumber Company manufactured 5,040 units of a component part that is used in its product and incurred the following costs:Direct materialsDirect laborVariable manufacturing overheadFixed manufactur

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
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The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
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