The Bramble Company manufactures 3,800 units of a part that could be purchased from an outside supplier for $14 each. Bramble's costs to manufacture each part are as follows: Direct materials $3 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total $19 All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have n- alternative uses. (a-b) (a) Calculate relevant cost to make.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The Bramble Company manufactures 3,800 units of a part that could be purchased from an outside supplier for $14 each. Bramble's
costs to manufacture each part are as follows:
Direct materials
$3
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
9.
Total
$19
All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no
alternative uses.
(a-b)
(a) Calculate relevant cost to make.
Gress marain- (Salos Cost/ales
Ready
F10
F8
Transcribed Image Text:-/ 30 View Policies Current Attempt in Progress The Bramble Company manufactures 3,800 units of a part that could be purchased from an outside supplier for $14 each. Bramble's costs to manufacture each part are as follows: Direct materials $3 Direct labor Variable manufacturing overhead Fixed manufacturing overhead 9. Total $19 All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no alternative uses. (a-b) (a) Calculate relevant cost to make. Gress marain- (Salos Cost/ales Ready F10 F8
alternative uses.
(a-b)
(a) Calculate relevant cost to make.
Relevent cost to make
24
per unit
(b) Should Bramble continue to manufacture the part?
Transcribed Image Text:alternative uses. (a-b) (a) Calculate relevant cost to make. Relevent cost to make 24 per unit (b) Should Bramble continue to manufacture the part?
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