General account Tchaikovsky Manufacturing Company can make 100 units of anecessary component part with the following costs.Direct MaterialsDirect LaborVariable Manufacturing OverheadFixed Manufacturing Overhead80,00013,00040,00027,000If Tchaikovsky Manufacturing Company purchases the componentexternally, $20,000 of the fixed costs can be avoided. At what externalprice for the 100 units is the company indifferent between making orbuying?a. $113,000b. $160,000c. $153,000d. $133,000

Step 1: Definition of Make or Buy DecisionThe Make or Buy Decision is a managerial accounting…

Answered: Tchaikovsky Manufacturing Company can…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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Similar questions

The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials, $17,000; direct labor, $33,000; and manufacturing overhead, $70,000? A. $16,000 B. $50,000 C. $103,000 D. $120000
What are the fixed overhead costs of making the component?
Nelly Technology manufactures a particular computer component. Currently, the costs per unit are asfollows:Direct material P 50Direct labor 500Variable overhead 250Fixed overhead 400Fur Inc. has obtained Nelly with a offer to sell 10,000 units of the component for P1,100 per unit. IfNelly accepts the proposal, P2,500,000 of the fixed overhead will be eliminated. Should Nelly makeor buy the component?
What are the fixed overhead costs of making the component
Sheffield Industries can produce 600 units of a necessary component part with the following costs: Direct Materials $75900 Direct Labour 20700 Variable Overhead 60300 Fixed Overhead 9700 If Sheffield Industries purchases the component externally, $2800 of the fixed costs can be avoided. Below what minimum external price for the 600 units would Sheffield choose to buy instead of make? $156900 $96600 $159700 $166600
Harmony is currently producing 100 units of a necessary component part by incurring $60,000 in direct materials, $12,500 in direct labour, $22,500 in variable overhead, and $15,000 in fixed overhead. If Harmony purchases the component externally, $10,000 of fixed costs can be avoided. What is the external price where the company is indifferent between buying and selling? $950 $1,050 O $1,000 O $1,100 Save for Later Submit Answer
Sheffield Corp. incurs the following costs to produce 10500 units of a subcomponent: Direct materials Direct labor Variable overhead Fixed overhead $(3600). $9200 Ⓒ$8150. $950. $(950). 11750 13000 An outside supplier has offered to sell Sheffield the subcomponent for $2.80 a unit. No fixed costs are avoidable. If Sheffield accepts the offer, it could use the production capacity to produce another product that would generate additional income of $3600. The increase (decrease) in net income from accepting the offer would be 20800
Questions for general account
Oriole, Inc. can produce 100 units of a component part with the following costs: Direct Materials Direct Labour Variable Overhead Fixed Overhead $30100 Buy and save $12500. O Make and save $4700. O Buy and save $1000. Make and save $1000. 13200 31700 21300 If Oriole Inc. can purchase the component externally for $87500 and only $7800 of the fixed costs can be avoided, what is the correct "make-or-buy decision"?
Waterway Industries incurs the following costs to produce 10600 units of a subcomponent: Direct materials $8904Direct labor 11978Variable overhead 13356Fixed overhead 16200 An outside supplier has offered to sell Waterway the subcomponent for $2.85 a unit. If Waterway accepts the offer, by how much will net income increase (decrease)? a. $(3074)b. $(9328)c. $4028d. $20228
Can you please give answer the accounting question?

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