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not wish to commit to a renta d contribute $178,000 per mo , what is the net amount of C

not wish to commit to a renta d contribute $178,000 per mo , what is the net amount of C

FINANCIAL ACCOUNTING
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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Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume that Chenango Industries does not wish to commit to a rental agreement but could use its idle capacity to manufacture another product that would contribute $178,000 per month. If Chenango's management elects to manufacture JR63 in order to maintain quality control, what is the net amount of Chenango's cost from using the space to manufacture part JR63? Show less a Net cost of using limited cApacity to produce part JR6I S 618,000 < Required 2 Requ
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume that Chenango Industries does not wish to commit to a rental agreement but could use its idle capacity to manufacture another product that would contribute $178,000 per month. If Chenango's management elects to manufacture JR63 in order to maintain quality control, what is the net amount of Chenango's cost from using the space to manufacture part JR63? Show less a Net cost of using limited cApacity to produce part JR6I S 618,000 < Required 2 Requ
Chenango Industries uses 12 units of part JR63 each month in the production of radar equipment. The cost of manufacturing one unit of JR63 is the following: 5 4,000 Direct naterial Material handling (20x of direct-naterial cost) Direct labor Manufarturing overhead (150% of direct labor) 39,000 S8,500 Total manufacturing cost $102, 300 Material handling represents the direct variable costs of the Recelving Department that are applied to direct materials and purchased components on the basis of their cost. This is a separate charge in addition to manufacturing overhead. Chenango Industries' annual manufacturing overhead budget is one-third variable and two thirds fixed. Scott Supply, one of Chenango Industries' reliable vendors. has offered to supply part number JR63 at a unit price of $64,000.
Transcribed Image Text:Chenango Industries uses 12 units of part JR63 each month in the production of radar equipment. The cost of manufacturing one unit of JR63 is the following: 5 4,000 Direct naterial Material handling (20x of direct-naterial cost) Direct labor Manufarturing overhead (150% of direct labor) 39,000 S8,500 Total manufacturing cost $102, 300 Material handling represents the direct variable costs of the Recelving Department that are applied to direct materials and purchased components on the basis of their cost. This is a separate charge in addition to manufacturing overhead. Chenango Industries' annual manufacturing overhead budget is one-third variable and two thirds fixed. Scott Supply, one of Chenango Industries' reliable vendors. has offered to supply part number JR63 at a unit price of $64,000.
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