O x ezt.prod.mheducation.com/Me × ezt.prod.mheducation.com/Me x ezt.prod.mheducation.com/Me + io.com/secured #lockdown d: Exam 5 i Saved NEXIGO Help ☆ Save & Exit ssume a company is considering using available space to make 10,000 units of a component part that it has been buying from a supplier for a price of $40.75 per mit. The company's accounting system estimates the following costs of making the part: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost Per 10,000 Units Unit per Year $ 17 $ 170,000 12 120,000 2 20,000 8 80,000 4 40,000 $ 45 $ 430,000 D One-half of the traceable fixed manufacturing overhead relates to a supervisor that would have to be hired to oversee production of the part. The remainder of the raceable fixed manufacturing overhead relates to depreciation of equipment that the company already owns. This equipment has 20,000 units of unused capacity. mo resale value, and it does wear out through use. The allocated fixed manufacturing overhead relates to general overhead costs, such as the plant manager's salary, lighting, heating and cooling costs, and plant insurance costs. What is the financial advantage (disadvantage) of making 10,000 units instead of buying them rom the supplier? 4+ Multiple Choice $(57,500) Search < Prev 10 of 20 Next > F12 400 PrtSc Insert Delete 1711 + $ % & * ( ) 5 6 7 8 9 0 R T Y U O P 1 1 G H B N M K Backspace Enter
O x ezt.prod.mheducation.com/Me × ezt.prod.mheducation.com/Me x ezt.prod.mheducation.com/Me + io.com/secured #lockdown d: Exam 5 i Saved NEXIGO Help ☆ Save & Exit ssume a company is considering using available space to make 10,000 units of a component part that it has been buying from a supplier for a price of $40.75 per mit. The company's accounting system estimates the following costs of making the part: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost Per 10,000 Units Unit per Year $ 17 $ 170,000 12 120,000 2 20,000 8 80,000 4 40,000 $ 45 $ 430,000 D One-half of the traceable fixed manufacturing overhead relates to a supervisor that would have to be hired to oversee production of the part. The remainder of the raceable fixed manufacturing overhead relates to depreciation of equipment that the company already owns. This equipment has 20,000 units of unused capacity. mo resale value, and it does wear out through use. The allocated fixed manufacturing overhead relates to general overhead costs, such as the plant manager's salary, lighting, heating and cooling costs, and plant insurance costs. What is the financial advantage (disadvantage) of making 10,000 units instead of buying them rom the supplier? 4+ Multiple Choice $(57,500) Search < Prev 10 of 20 Next > F12 400 PrtSc Insert Delete 1711 + $ % & * ( ) 5 6 7 8 9 0 R T Y U O P 1 1 G H B N M K Backspace Enter
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ezt.prod.mheducation.com/Me ×
ezt.prod.mheducation.com/Me
x
ezt.prod.mheducation.com/Me
+
io.com/secured #lockdown
d: Exam 5 i
Saved
NEXIGO
Help
☆
Save & Exit
ssume a company is considering using available space to make 10,000 units of a component part that it has been buying from a supplier for a price of $40.75 per
mit. The company's accounting system estimates the following costs of making the part:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead, traceable
Fixed manufacturing overhead, allocated
Total cost
Per
10,000 Units
Unit
per Year
$ 17
$ 170,000
12
120,000
2
20,000
8
80,000
4
40,000
$ 45
$ 430,000
D
One-half of the traceable fixed manufacturing overhead relates to a supervisor that would have to be hired to oversee production of the part. The remainder of the
raceable fixed manufacturing overhead relates to depreciation of equipment that the company already owns. This equipment has 20,000 units of unused capacity.
mo resale value, and it does wear out through use. The allocated fixed manufacturing overhead relates to general overhead costs, such as the plant manager's
salary, lighting, heating and cooling costs, and plant insurance costs. What is the financial advantage (disadvantage) of making 10,000 units instead of buying them
rom the supplier?
4+
Multiple Choice
$(57,500)
Search
< Prev
10 of 20
Next >
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400
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Delete
1711
+
$
%
&
*
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5
6
7
8
9
0
R
T
Y
U
O
P
1
1
G
H
B
N
M
K
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