Please give me correct answer this accounting question Everton Industries produces a part that is used in the manufacture ofone of its products. The costs associated with the production of 15,000units of this part are as follows:Amount105,000 euroCost ComponentDirect MaterialsDirect Labor152,000 euroVariable Factory Overhead72,000 euro155,000 euro484,000 euroFixed Factory OverheadTotal CostsOf the fixed factory overhead costs, 74,000 euros is avoidable. Assumingno other use of their facilities, what is the highest price that EvertonIndustries should be willing to pay to buy externally 15,000 units of thepart?

We must compute the avoidable expenses of in-house production in order to establish the highest…

Answered: Everton Industries produces a part that…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...

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Sheddon Industries produces two products. The products' identified costs are as follows: Product A Product B Direct materials $20,000 $15,000 Direct labor $12,000 $24,000 The company's overhead costs of $108,000 are allocated based on direct labor cost. Assume 4,000 units of product A and 5,000 units of Product B are produced. What is the cost per unit for product B? (Do not round your intermediate calculations.)
Pharoah Company manufactured 6,720 units of a component part that is used in its product and incurred the following costs: Direct materials $39,200 Direct labor 16,800 Variable manufacturing overhead 11,200 Fixed manufacturing overhead 22,400 $89,600 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, Pharoah Company has the opportunity to use the factory equipment to produce another product which is estimated to have a contribution margin of $24,640.Prepare an incremental analysis report for Pharoah Company which can serve as informational input into this make or buy decision.
Jensen Corporation produces a part for use in the production of one of its products. The per-unit costs associated with the annual production of 1,000 units of this part are as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Total costs $5.25 $12.00 $2.75 $6.00 $26.00 $2,500 of the fixed factory overhead costs associated with the production of this product are common fixed costs. Wells Company has offered to sell 1,000 units of the same part to Jensen Corporation for $21 per unit. Jensen should: Select one: O a. Buy the part, because this would save the company $5.00 per unit. O b. Make the part, because this would save the company $1.00 per unit. O c. Make the part, because this would save the company $2,500 annually. O d. Buy the part, because this would save the company $2,500 annually.
Sheridan Company produces 5000 units of part A12E. The following costs were incurred for that level of production: Direct materials $ 65000 Direct labor 170000 Variable overhead 85000 Fixed overhead 175000 If Sheridan buys the part from an outside supplier, $30000 of the fixed overhead is avoidable.What is the relevant cost per unit of part A12E? $99 $70 $93 $64
Scott Corporation produces a part for use in the production of one of its products. The per-unit costs associated with the annual production of 1,000 units of this part are as follows: Direct Materials $10.50 $24.00 Direct labor Variable factory overhead $5.50 Fixed factory overhead $12.00 Total Costs $52.00 $5,000 of the fixed factory overhead costs associated with the production of this product are common fixed costs. Larson Company has offered to sell 1,000 units of the same part to Scott Corporation for $42 per unit. Scott should: Select one: a. buy the part, because this would save $10.00 per unit. X b. buy the part, because this would save the company $5,000 annually. c. make the part, because this would save the company $5,000 annually. d. make the part, because this would save $2.00 per unit.
Piels Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows: Direct materials $87,000 Direct labor: $126,000 Variable factory overhead: $58,000 Fixed factory overhead: $136,000 Total costs: $407,000 Of the fixed factory overhead costs, $55,000 is avoidable Assuming no other use of their facilities, the highest price that Piels should be willing to pay for 10,000 units of the part is ?
The company has the following financial information:Manufacturing overhead- P30,101,800Increase in raw materials- P2,430,000Decrease in work in process- P590,000Increase in finished goods- P1,320,400Manufacturing overhead amounts to 50% of direct labor, and the direct labor and manufacturing overhead combined equal 50% of the total cost of manufacturing.How much is the cost of goods sold? Choices: • P181,200,800 • P179,880,400 • P177,590,800 • P180,020,800
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A company makes one product which passes through only one process. The details of the process account are as follows; material cost- 20000kg @ GH¢1.3/kg, labour cost- GH¢12000, and production overheads- GH¢5700. The actual output from the process is 18800kg with expected normal loss of 5% of input. The value of abnormal loss isA. GH¢460B. GH¢441C. GH¢456D. GH¢437
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?
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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