I want the correct answer is accounting The Norran Company needs 15,000 units of a certain part to use in its productioncycle. If Norran buys the part from Waterloo Company instead of making it,Norran could not use the released facilities in another activity; thus, all of thefixed overhead applied will continue regardless of what decision is made.Accounting records provide the following data:Cost to Norran to make the part:Direct materialsDirect laborVariable overheadFixed overhead applied$3$12$13$8Cost to buy the part from the Waterloo Company $27In deciding whether to make or buy the part, Norran's total relevant costs tomake the part are:A. $240,000.B. $405,000.C. $360,000.D. $420,000.

Step 1: Define Relevant CostThe management action impacts the relevant cost only under…

Answered: The Norran Company needs 15,000 units…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 2PA: York Company Is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of...

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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?
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