If the part is purchased, the space released can be rented for P65,000. If the part is purchased, the company will
Q: Beat Company manufactures 8,000 units of a certain component per year. This component is used in the…
A: Total relevant cost of production = (Direct materials + Direct materials x 2% + Direct labor +…
Q: Charge Company manufactures a part for its production cycle. The annual costs per unit for 5,000…
A: Total units = 5,000 Purchase price per unit = $15
Q: Beto Company pays $3.10 per unit to buy a part for one of the products it manufactures. With excess…
A: The differential analysis is prepared to compare the different alternatives available with the…
Q: Joey is trying hard to make a sale and is happy to help you gather info on the MD64S. After a long…
A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…
Q: would be 80% of direct labor cost. (a) Prepare a make or buy analysis of costs for this part. (Enter…
A: Requirement:- 1)Preparation of a make or buy analysis of costs for this unit as follows under:-
Q: ABC Company manufactures Part AA for use in its production cycle. The costs per unit for 25,000…
A: Relevant cost to Make Amount (in P) Direct materials (25,000 units X P 7.50 per unit)…
Q: Xia Co. currently buys a component part for $9 per unit. Xia believes that making the part would…
A: Relevant costs are those costs that are affected by a management decision. For instance here the…
Q: 37.50 15.00
A: Number of units=25000
Q: (a) Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal…
A:
Q: A company currently pays $5 per unit to buy a key part for a product it manufactures. It can make…
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: ensen Corporation produces a part for use in the production of one of its products. The per-unit…
A: The variable cost per unit remains constant at every level of production. The fixed costs in total…
Q: Aerobill Inc. makes 7,500 units of a part each year. This part is used in one of the company's…
A: Make or buy decision is simply the choice between making the part or the article within the factory…
Q: U-RIDE, Inc. currently produces the electric engines that are used in golf carts made and sold by…
A: Facility-level depreciation and Annual facility-level utilities would not be considered for…
Q: company manufactures a certain part for use in its assembly operation. cost per unit for 5,000 units…
A: Lets understand the basics. When there is choice between the whether to make product or buy product…
Q: achor Company manufactures two products. Product A has 800 units produced, require 200 material…
A: Solution: Material handling cost allocated to A = Total cost * Material moves of A / total material…
Q: The Vinta Company estimates its factory overhead for the next period at P2,500,000. It is estimated…
A: Predetermined overhead rate = Estimated overhead cost / Direct labor cost
Q: Beto Company pays $6.50 per unit to buy a part for one of the products it manufactures. With excess…
A: MAKE OR BUY DECISIONThe make-or-buy decision is choosing between manufacturing a product within a…
Q: Beta makes a component used in its engine. Monthly production costs for 1,000 component units are as…
A: Change in monthly operating income=Monthly avoidable costs-Purchase cost from outside supplier
Q: Penagos Corporation is presently making part Z43 that is used in one of its products. A total of…
A: Relevant cost is the cost which is relevant in decision making. It is managerial accounting term. It…
Q: Ho Cabinet Company has developed the following overhead cost formulas: Overhead Cost…
A: Factory overhead: It is also called manufacturing/production overhead. It includes the cost incurred…
Q: Shine Engine Company manufacturers Part A which is used in several of its engine models. Monthly…
A: A make-or-buy decision seems to be a process of employing cost-benefit analysis to make a calculated…
Q: Clemente Inc. incurs the following costs to produce 10,000 units of a subcomponent: Direct…
A: Net income: The bottom line of income statement which is the result of excess of earnings from…
Q: Beto Company pays $3.50 per unit to buy a part for one of the products it manufactures. With excess…
A: Making or buy analysis deciding if to manufacture the product in-house or to purchase it from a…
Q: The Vinta Company estimates its factory overhead for the next period at P2,500,000. It is estimated…
A: Predetermined overhead rate = Estimated overhead cost / Direct material cost
Q: Beto Company pays $7.30 per unit to buy a part for one of the products it manufactures. With excess…
A: MAKE OR BUY DECISIONThe make-or-buy decision is choosing between manufacturing a product within a…
Q: Product A is produced with the following costs: 1) Paper material P20 per unit 2)…
A: Answer: As per Q/A guidelines, we have answered first 3 subparts of question. 1) Paper material…
Q: Scott Corporation produces a part for use in the production of one of its products. The per-unit…
A: It is the act of choosing between manufacturing a product in-house or purchasing it from an external…
Q: A manufacturer has been offered a contract to manufacture a certain product that will utilize the…
A: (1) New product will use 0.3 kg of waste Materials for 1 unit Manufacturing => 1 kg of Waste…
Q: Specter Company makes 20,000 units per year of a part it uses in the products it manufactures. The…
A: In management accounting, the expression "relevant cost" indicates avoidable expenditures that only…
Q: Products A and B are produced from a single raw material input. The raw material costs $90,000, from…
A: The impact on net income due to further processing the product is calculated by comparing the…
Q: It costs P450,000 to make 150,000 units of a part in the plant. This cost includes material of…
A: Relevant costs to make Relevant costs to buy Purchase cost (15,000 * P20) P3,00,000 Direct…
Q: Beto Company pays $6.70 per unit to buy a part for one of the products it manufactures. With excess…
A: The differential analysis is performed to anlayze the different situation or alternatives available…
Q: Shine Engine Company manufacturers Part A which is used in several of its engine models. Monthly…
A: Avoidable cost: If a particular activity is not carried out, then the cost which is not incurred is…
Q: Beto Company pays $5.50 per unit to buy a part for one of the products it manufactures. With excess…
A: If we make the product then Cost per unit of product includes Direct material, Direct Labor,…
It costs P450,000 to make 15,000 units of a part in this plant. This cost includes material of P90,000, direct labor of P120,000, variable overhead of 15,000, and P225,000 in fixed overhead inclusive of P45,000 in
a. lose P20,000
b. lose P45,000
c. gain P20,000
d. gain P45,000
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- Beat Company manufactures 8,000 units of a certain component per year. This component is used in the production of the main product. The following are the costs to make the component per unit: Direct materials $4 Direct labor $4 Variable overhead $3 Fixed overhead $5 If Beat Company buys the component from an outside supplier, the company can rent out the released facilities for P12,360 a year. The cost of the component per unit as quoted by the supplier is P15. 25% of fixed overhead applied in the manufacture of the component will continue regardless of what decision is made. For all purchase made by the company, freight and handling costs are applied at 2% of the purchase price. The direct materials cost presented above is exclusive of such freight and handling cost. What is the advantage or disadvantage of buying the component?A. P12,240 advantage B. 24,600 advantage C. 5,400 disadvantage D. 8,600 advantageSheddon 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.)Nachor Company manufactures two products. Product A has 800 units produced, require 200 material moves and one direct labor hour per unit; Product B has 1,600 units produced, require 800 material moves and two direct labor hours per unit. The materials handling costs $2,000,000. Under the Activity Based Costing, the material handling costs allocated to each unit of A and B would be, respectively: $500 and $500 $500 and $1,000 $1,000 and $1,000 $1,000 and $2,000 None of the above
- Aerobill Inc. makes 7,500 units of a part each year. This part is used in one of the company's products. The company's Accounting Department reports the following costs of producing the part at the current production volume: Direct materials $10.25 per unit Direct labor $15.50 per unit Variable overhead $5.90 per unit Supervisor's salary $81,000 per year Depreciation of special $15,500 per year equipment Allocated general $2.10 per unit overhead An outside supplier has offered to make the part for Aerobill and sell it to Aerobill for $41.50 per unit. If this offer is accepted, then the supervisor's salary and all variable costs can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company and would be reallocated if the part were outsourced. If the part is outsourced, then the space used to produce the part could be used to make more of one of…XYZ company's prime costs total OMR 5,000,000 and its conversion costs total OMR 9,000,000. If direct materials are OMR 1,500,000 and factory overhead is OMR 5,500,000, then direct labor is:Aaron, Inc. estimates direct labor costs and manufacturing overhead costs for the coming year to be $760,000 and $500,000, respectively. Aaron allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are 16,000 hours and 5,000 hours, respectively. What is the predetermined overhead allocation rate? (Round your answer to the nearest cent.) OA. $1.52 per labor hour OB. $100.00 per machine hour OC. $152.00 per machine hour O D. $31.25 per labor hour
- company manufactures a certain part for use in its assembly operation. cost per unit for 5,000 units of part is a total of P26.00 from the following: direct labor is P12.00; direct materials is P2.00; fixed factory overhead is P7.00 and variable factory overhead is P5.00. Company B offered company A 5,000 units for P27.00 per unit. If company A accepts some of its facilities presently used to manufacture the part could be used to help with the manufacture of part, thus saving P40,000.00 in relevant cost in its manufacture and eliminating P3.00 per unit of the fixed factory overhead. find the savings if any from buying instead of making.Joey is trying hard to make a sale and is happy to help you gather info on the MD64s. After a long phone chat, you have the following information. MD64 Purchase Price $ 750,000 Annual Utilization (hrs/yr) 2,000 Expected Life (yrs) 7 Salvage Value 24 200,000 Annual Cost Fuel, Oil, Grease, etc. 75,000 Lifetime Cost of Repairs $ 750,000 Capacity (tons) 64 Cycle Time (min) 12 The quarry as a whole works 50 mins of each hour. Calculate the hourly rates for the MD64 haulers, the production rate, and the unit cost each can achieve. MD64Penagos Corporation is presently making part Z43 that is used in one of its products. A total of 5,000 units of this part are produced and used every year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Direct materials. Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead An outside supplier has offered to produce and sell the part to the company for $20.80 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $4,000 of these allocated general overhead costs would be avoided. If management decides to buy part Z43 from the outside supplier rather than to…
- 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.Aaron, Inc. estimates direct labor costs and manufacturing overhead costs for the coming year to be $770,000 and $500,000, respectively. Aaron allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are 17,000 hours and 5,000 hours, respectively. What is the predetermined overhead allocation rate? (Round your answer to the nearest cent.) A. $29.41 per labor hour B. $1.54 per labor hour C. $154.00 per machine hour D. $100.00 per machine hourProducts A and B are produced from a single raw material input. The raw material costs $90,000, from which 5,000 units of A and10,000 units of B can be produced each period. Product A can be sold at the split-off point for $2 per unit, or it can be processed further at a cost of $12,500 and then sold for $5 per unit. Product B can be sold at the split-off point for $8 per unit, or it can be processed further at a cost of $40,000 and then sold for $12 per unit. What is the total change in net income if both products are processed further?
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