Dough, Re, Mi Inc. sells many different types of cookie dough. The company is deciding whether to continue making its own dough or to outsource. If the company outsources, they will eliminate all of the variable overhead and 30% of the fixed manufacturing overhead, but will incur shipping costs. Use the information below to detemine whether Dough, Re, Mi Inc. should outsource or not. Data Units Per unit Relevant? Sales price per unit 5,750 111.00 Direct materials per unit 24.00 Direct labor per unit 18.00 14.00 Variable manufacturing overhead Fixed manufacturing overheMOH) : per unit per month 28.00 Avoidable fixed MOH per month n/a Unavoidable fixed MOH per month n/a Sales commissions per unit 3.00 Advertising costs per month 1.80 Purchase price of outsourced product per unit 59.00 Shipping costs of outsourced product per unit 1.00 Costs per unit Incremental analysis Manufacture Outsource Manuf Variable costs Enter "-0" in the cell for any cost not relevant to the decision. Direct materials n/a Direct labor n/a n/a Variable manufacturing overhead Purchase price n/a Shipping costs n/a Instructions A M6 Project +
Dough, Re, Mi Inc. sells many different types of cookie dough. The company is deciding whether to continue making its own dough or to outsource. If the company outsources, they will eliminate all of the variable overhead and 30% of the fixed manufacturing overhead, but will incur shipping costs. Use the information below to detemine whether Dough, Re, Mi Inc. should outsource or not. Data Units Per unit Relevant? Sales price per unit 5,750 111.00 Direct materials per unit 24.00 Direct labor per unit 18.00 14.00 Variable manufacturing overhead Fixed manufacturing overheMOH) : per unit per month 28.00 Avoidable fixed MOH per month n/a Unavoidable fixed MOH per month n/a Sales commissions per unit 3.00 Advertising costs per month 1.80 Purchase price of outsourced product per unit 59.00 Shipping costs of outsourced product per unit 1.00 Costs per unit Incremental analysis Manufacture Outsource Manuf Variable costs Enter "-0" in the cell for any cost not relevant to the decision. Direct materials n/a Direct labor n/a n/a Variable manufacturing overhead Purchase price n/a Shipping costs n/a Instructions A M6 Project +
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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can you help fill in the yellow cells
Transcribed Image Text:A
D
E
F
usourcing
5
Dough, Re, Mi Inc. sells many different types of cookie dough. The company is deciding whether to continue making its own dough or to outsource.
6.
If the company outsources, they will eliminate all of the variable overhead and 30% of the fixed manufacturing overhead, but will incur shipping costs.
7.
Use the information below to detemine whether Dough, Re, Mi Inc. should outsource or not.
8
9.
10
Data
Units
Per unit
Relevant?
11
Sales price
per unit
5,750
$
111.00
12
Direct materials
per unit
24.00
13
Direct labor
per unit
18.00
14
Variable manufacturing overhead
per unit
14.00
15
„Fixed manufacturing overh MOH):
per month
28.00
16
Avoidable fixed MOH
per month
n/a
17
Unavoidable fixed MOH
per month
n/a
18
Sales commissions
per unit
3.00
19
Advertising costs
per month
1.80
20
Purchase price of outsourced product
per unit
59.00
21
Shipping costs of outsourced product
per unit
1.00
22
23
6497FDCF-
24
Costs per unit
\6E-47...6B.J 25
Incremental analysis
Manufa
Manufacture
Outsource
26
Variable costs
Enter "=0" in the cell for any cost not relevant to the decision.
27
Direct materials
n/a
28
Direct labor
n/a
Variable manufacturing overhead
Purchase price
29
n/a
30
n/a
31
Shipping costs
n/a
Instructions
A M6 Project
Ready
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2022-02...7.26 PM
Transcript.pdf
M13A1
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How are the avoidable fixed MOH and the unavoidable fixed MOH calculated? I see that they equal the total fixed manufacturing
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