Utica Company, Crown could not use the released facilities in another manufacturing activity within the coming year. 60% of the fixed overhead applied will continue regardless of which decision option is chosen. The following per-unit cost information to make the part by Crown is available: Direct materials Direct labor Variable overhead Fixed overhead applied Multiple Choice Cost to buy the part from Utica Company In deciding whether to make or buy the part, Crown's total relevant cost to make the part would be: O$642.000 $ 16 $780,000 34 22 15 $ 87 $ 83
Utica Company, Crown could not use the released facilities in another manufacturing activity within the coming year. 60% of the fixed overhead applied will continue regardless of which decision option is chosen. The following per-unit cost information to make the part by Crown is available: Direct materials Direct labor Variable overhead Fixed overhead applied Multiple Choice Cost to buy the part from Utica Company In deciding whether to make or buy the part, Crown's total relevant cost to make the part would be: O$642.000 $ 16 $780,000 34 22 15 $ 87 $ 83
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sh14
Transcribed Image Text:Crown Company, which needs 10,000 units of a certain part to be used in its production cycle, can make or buy the part. If Crown buys the part from
Utica Company, Crown could not use the released facilities in another manufacturing activity within the coming year. 60% of the fixed overhead applied
will continue regardless of which decision option is chosen. The following per-unit cost information to make the part by Crown is available:
Direct materials
Direct labor
Variable overhead
Fixed overhead applied
Multiple Choice
Cost to buy the part from Utica Company
In deciding whether to make or buy the part, Crown's total relevant cost to make the part would be:
$642,000
$ 16
34
$780,000
22
15
$ 87
$ 83
Transcribed Image Text:Multiple Choice
$642,000.
$780,000
$830,000.
$870,000
Some amount other than these choices
0
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