sub question 1 and 2 Required:1. Prepare an analysis showing whether GI would be better off making or buying the balls at a projected volume of 80,000 packs(320,000 golf balls). (Round "Per Unit" answers to 2 decimal places.)80,000 packsPer UnitMakeBuyDifferencePurchaseDirect materialsDirect labourVariable manufacturing overheadFixed manufacturing overheadCommon costs allocated to this product lineTotal costs2-a. At what volume would GI be indifferent between making and buying? (Do not round intermediate calculations and round yourFinal answer to nearest whole number.)Indifferent pointpacks Golfers, Inc. (GI) manufactures golf-related equipment including golf balls. This year's expected production of golf balls is 80,000 packs(each consisting of four golf balls). Cost data are as follows:80,000PacksPer PackProduct costs directly traceable to balls:Direct materialsDirect labourVariable manufacturing overheadFixed manufacturing overheadGeneral allocated overhead$2.30 $184,00096,00020,00040,80021,6001. 200.25$362,400The full cost of one pack of golf balls is $4.53. GI has received an offer from an outside supplier to supply any desired quantity of ballsat a price of $5.45 per pack of four golf balls. The cost accounting department has provided the following information:a. The direct fixed manufacturing overhead is the cost of leasing the machine that stamps out the balls. The machine can produce amaximum of 500,000 balls per year. If the balls are bought, the machine will no longer be needed.b. No other costs will be affected.

Required: 1. Prepare an analysis showing whether Gl would be better off making or buying the balls at a projected volume of 80,000 packs (320,000 golf balls). (Round "Per Unit" answers to 2 decimal places.) 80,000 packs Per Unit Make 38Buy Difference Purchase Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Common costs allocated to this product line Total costs

Required: 1. Prepare an analysis showing whether Gl would be better off making or buying the balls at a projected volume of 80,000 packs (320,000 golf balls). (Round "Per Unit" answers to 2 decimal places.) 80,000 packs Per Unit Make 38Buy Difference Purchase Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Common costs allocated to this product line Total costs

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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