MANAGERIAL ACCOUNTING FOR MANAGERS EBOOK
MANAGERIAL ACCOUNTING FOR MANAGERS EBOOK
6th Edition
ISBN: 9781264445615
Author: Noreen
Publisher: MCG
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Daily Kneads, Inc., is considering outsourcing one of its many products rather than making it internally. The supplier will charge $20,000 for 20,000 pounds of the product. The costs per pound to make this product include: Cost per Pound $0.30 Direct Labor Direct Materials $0.60 $0.70 Allocated Unavoidable Overhead If Daily Kneads outsources, what is the savings (or loss) per pound for the company as a whole? If the amount is a loss include a negative sign (not parentheses) in your answer. "_"
"Blast it!" sald David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers Job by $2,000. It seems we're elther too high to get the Job or too low to make any money on half the Jobs we bid." Teledex Company manufactures products to customers' specifications and uses a job-order costing system. The company uses a plantwide predetermined overhead rate based on direct labor cost to apply Its manufacturing overhead (assumed to be all fixed) to Jobs. The following estimates were made at the beginning of the year. Department Fabricating Machining $ 358,750 $ 410, e00 $ 102,500 Assembly 92, 250 $ 307,500 S Total Plant Manufacturing overhead Direct labor 861,e0e 615, eee 24 205,000 Jobs require varying amounts of work In the three departments. The Koopers Job, for example, would have requlred manufacturing costs In the three departments as follows: Fabricating $ 3,500 $ 3,800 Department Machining $ 200 $ 500 Assembly $1,900 $ 6,700 Total Plant $ 5,600 $11,000 Direct…
"Blast It!" sald David Wilson, president of Teledex Company. "We've Just lost the bid on the Koopers job by $2,000. It seems we're either too high to get the job or too low to make any money on half the jobs we bid." Teledex Company manufactures products to customers' specifications and uses a job-order costing system. The company uses a plantwide predetermined overhead rate based on direct labor cost to apply Its manufacturing overhead (assumed to be all fixed) to Jobs. The following estimates were made at the beginning of the year. Department Fabricating Machining $ 358,750 $ 410,e00 $ 205,000 Assembly Total Plant Manufacturing overhead 92,250 $ 307,500 861, eee 615, e00 Direct labor $ 102,500 Jobs require varying amounts of work in the three departments. The Koopers job, for example, would have required manufacturing costs in the three departments as follows: Fabricating $ 3,500 $ 3,800 Department Machining $ 200 $ 5ee Assembly $ 1,900 $ 6,700 Total Plant $ 5,600 $11,000 Direct…
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