Q.5) The estimated costs of producing 6,000 units of a component are:TotalPer UnitDirect MaterialDirect LaborApplied Variable Factory OverheadApplied Fixed Factory Overhead($1.5 per direct labor dollar)$10 $60,00048,00054,00072,0009.12$39 $234,000The same component can be purchased from market at a price of $29 per unit. If thecomponent is purchased from market, 25% of the fixed factory overhead will be saved.Required:Decide whether to make this product or buy this product from the market. Show computations.

Name: Q.5) The estimated costs of producing 6,000 units of a component are:
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Description: Q.5) The estimated costs of producing 6,000 units of a component are:TotalPer UnitDirect MaterialDirect LaborApplied Variable Factory OverheadApplied Fixed Factory Overhead($1.5 per direct labor dollar)$10 $60,00048,00054,00072,0009.12$39 $234,000Th

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Accounting

Q.5) The estimated costs of producing 6,000 units of a component are: Per Unit Total Direct Material Direct Labor $10 $60,000 8. 48,000 Applied Variable Factory Overhead Applied Fixed Factory Overhead ($1.5 per direct labor dollar) 9. 54,000 12 72,000 $39 $234,000 The same component can be purchased from market at a price of $29 per unit. If the component is purchased from market, 25% of the fixed factory overhead will be saved. Required: Decide whether to make this product or buy this product from the market. Show computations.

Q.5) The estimated costs of producing 6,000 units of a component are: Per Unit Total Direct Material Direct Labor $10 $60,000 8. 48,000 Applied Variable Factory Overhead Applied Fixed Factory Overhead ($1.5 per direct labor dollar) 9. 54,000 12 72,000 $39 $234,000 The same component can be purchased from market at a price of $29 per unit. If the component is purchased from market, 25% of the fixed factory overhead will be saved. Required: Decide whether to make this product or buy this product from the market. Show computations.

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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