Oriole Company manufactures widgets. Embree Company has approached Oriole with a proposal to sell the company widgets at atotal selling price of $120000 for 100000 units. Oriole has the following cost associated the production of 100000 widgets:Direct materialsDirect laborManufacturingoverheadTotal$ 440004200056000$142000Manufacturing overhead includes $25000 of costs that will be eliminated if the widgets are no longer produced by Oriole. What is theincremental cost or savings if the widgets are bought instead of made?$9000 incremental cost.$9000 incremental savings.$22000 incremental savings.$22000 incremental cost.

The incremental costs or savings if the widget are bougt instead of made will be difference of cost…

Answered: Oriole Company manufactures widgets.…

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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