Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials Direct labor Variable overhead Fixed overhead Total $48.00 40.00 37.00 34.00 $159 00 Crayola Technologies Inc. has contacted Rubium with an offer to sell 9000 of the subassemblies for $145.00 each. Rublum will eliminate $93,000 of fixed overhead if it accepts the proposal. What are the relevant costs for Rubium? $1,218,000 $831,000 $1,524,000 $885,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows:
Direct materials
Direct labor
Variable overhead
Fixed overhe ad
$48.00
40.00
37.00
34 00
$159.00
Total
Crayola Technologies Inc. has contacted Rublum with an offer to sell 9000 of the subassemblies for $145.00 each. Rublum will eliminate
$93,000 of fixed overhead if it accepts the proposal. What are the relevant costs for Rubium?
$1,218,000
$831,000
$1,524,000
$885,000
Transcribed Image Text:Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials Direct labor Variable overhead Fixed overhe ad $48.00 40.00 37.00 34 00 $159.00 Total Crayola Technologies Inc. has contacted Rublum with an offer to sell 9000 of the subassemblies for $145.00 each. Rublum will eliminate $93,000 of fixed overhead if it accepts the proposal. What are the relevant costs for Rubium? $1,218,000 $831,000 $1,524,000 $885,000
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