Part U67 is used in one of Broce Corporation's products. The company's Accounting Department reports the...
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Part U67 is used in one of Broce Corporation's products. The company's Accounting Department reports the followin producing the 16,500 units of the part that are needed every year. Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $ 3.70 $ 4.40 $ 7.40 $8.10 $ 8.70 $ 5.70 An outside supplier has offered to make the part and sell it to the company for $30.00 each. If this offer is accepted, salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the p purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed company. If the outside supplier's offer were accepted, only $22,500 of these allocated general overhead costs wou Required: a. Prepare a report that shows the financial impact of buying part U67 from the supplier rather than continuing to ma company. b. Which alternative should the company choose? Complete this question by entering your answers in the tabs below. Required A Required B Prepare a report that shows the financial impact of buying part U67 from the supplier rather than continuing to make it ins the company, Direct materials Make Buy Navt Part U67 is used in one of Broce Corporation's products. The company's Accounting Department reports the followin producing the 16,500 units of the part that are needed every year. Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $ 3.70 $ 4.40 $ 7.40 $8.10 $ 8.70 $ 5.70 An outside supplier has offered to make the part and sell it to the company for $30.00 each. If this offer is accepted, salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the p purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed company. If the outside supplier's offer were accepted, only $22,500 of these allocated general overhead costs wou Required: a. Prepare a report that shows the financial impact of buying part U67 from the supplier rather than continuing to ma company. b. Which alternative should the company choose? Complete this question by entering your answers in the tabs below. Required A Required B Prepare a report that shows the financial impact of buying part U67 from the supplier rather than continuing to make it ins the company, Direct materials Make Buy Navt
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Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
Posted Date:
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