sub question 2a and b Golfers, Inc. (GI) manufactures golf-related equipment including golf balls. This year's expected production of golf balls is 80,000 packs(each consisting of four golf balls). Cost data are as follows:80,000PacksPer PackProduct costs directly traceable to balls:Direct materialsDirect labourVariable manufacturing overheadFixed manufacturing overheadGeneral allocated overhead$2.30 $184,00096,00020,00040,80021,6001. 200.25$362,400The full cost of one pack of golf balls is $4.53. GI has received an offer from an outside supplier to supply any desired quantity of ballsat a price of $5.45 per pack of four golf balls. The cost accounting department has provided the following information:a. The direct fixed manufacturing overhead is the cost of leasing the machine that stamps out the balls. The machine can produce amaximum of 500,000 balls per year. If the balls are bought, the machine will no longer be needed.b. No other costs will be affected. 2-a. At what volume would GI be indifferent between making and buying? (Do not round intermediate cealculations and round yourfinal answer to nearest whole number.)nt polntpacks2-b. What does the indifference point indicate? (Do not round intermediate calculations and round your final answers to nearestwhole number.)t will cost more toif the quantity exceedspacksIt will cost more toif the quantity is belowpacks

At what volume would GI be indifferent between making and buying is below mentioned : Formula of…

Golfers, Inc. (GI) manufac (each consisting of four golf balls). Cost data are as follows: 80,000 Packs Per Pack Product costs directly traceable to balls: Direct materials Direct labour $2.30 $184,000 96,000 20,000 40,800 1.20 Variable manufacturing overhead Fixed manufacturing overhead General alllocated overhead 0. 25 21,600 $362,400 any desired quantity of balls

Golfers, Inc. (GI) manufac (each consisting of four golf balls). Cost data are as follows: 80,000 Packs Per Pack Product costs directly traceable to balls: Direct materials Direct labour $2.30 $184,000 96,000 20,000 40,800 1.20 Variable manufacturing overhead Fixed manufacturing overhead General alllocated overhead 0. 25 21,600 $362,400 any desired quantity of balls

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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