Please do not give solution in image format thanku Oriole Company must decide whether to make or buy some of its components. The costs of producing 63,800 switches for itsgenerators are as follows.Direct materialsDirect labor(a)Instead of making the switches at an average cost of $2.99 ($190,762 +63,800), the company has an opportunity to buy the switchesat $2.70 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated.$29,100 Variable overhead$40,462Fixed overheadDirect materialsPrepare an incremental analysis showing whether the company should make or buy the switches. (Enter negative amounts usingeither a negative sign preceding the number eg.-45 or parentheses e.g. (45))Direct laborVariable manufacturingcosts$44,800$76,400$MakeBuy$Net IncomeIncrease (Decrease) Direct materialsDirect laborVariable manufacturingcostsFixed manufacturing costsPurchase priceTotal costOriole Company will incur $MakeBuyof additional costs if it$Net IncomeIncrease (Decrease)the switches.

Incremental Analysis :— This analysis shows the comparison between two different alternatives.…

Oriole Company must decide whether to make or buy some of its components. The costs of producing 63,800 switches for its generators are as follows. Direct materials Direct labor (a) $29.100 $40,462 Instead of making the switches at an average cost of $2.99 ($190,762 +63,800), the company has an opportunity to buy the switches at $2.70 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. Direct materials Direct labor Variable overhead Fixed overhead Prepare an incremental analysis showing whether the company should make or buy the switches. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45)) Variable manufacturing costs $44,800 $76,400 Make $ Buy Net Income Increase (Decrease)

Oriole Company must decide whether to make or buy some of its components. The costs of producing 63,800 switches for its generators are as follows. Direct materials Direct labor (a) $29.100 $40,462 Instead of making the switches at an average cost of $2.99 ($190,762 +63,800), the company has an opportunity to buy the switches at $2.70 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. Direct materials Direct labor Variable overhead Fixed overhead Prepare an incremental analysis showing whether the company should make or buy the switches. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45)) Variable manufacturing costs $44,800 $76,400 Make $ Buy Net Income Increase (Decrease)

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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