question 11 point(s) possible Outdoor Life manufactures snowboards. Its cost of making 20,000 bindings is as...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
question 11 point(s) possible Outdoor Life manufactures snowboards. Its cost of making 20,000 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Outdoor Life for $14 each. Outdoor Life will pay $3.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.50 per binding. Read the requirements. Submit test Requirement 1. Outdoor Life's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $1,800 of fixed overhead. Prepare an analysis to show whether the company should make or buy the bindings. (Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy.) Incremental Analysis Outsourcing Decision Make Bindings Buy (Outsource) Bindings Difference Variable Costs Plus: Fixed Costs Total cost of 20,000 bindings Decision: Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3,400 to profit. Total fixed costs will be the same as if Outdoor Life had produced the bindings. Show which alternative makes the best use of Outdoor Life's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. (Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar.) Incremental Analysis (a) Make Outsourcing Decision Binding Buy (Outsource) Bindings (b) Leave (c) Make Facilities Idle Another Product Data table - X Variable Costs Plus: Fixed Costs Total cost of 20,000 bindings Less: Profit from another product Net cost Decision: Direct materials. $ 20,000 Direct labor 80,000 Variable manufacturing overhead 40,000 80,000 Fixed manufacturing overhead $ 220,000 Total manufacturing costs Cost per pair ($220,000 + 20,000) $ 11.00 Print Done question 11 point(s) possible Outdoor Life manufactures snowboards. Its cost of making 20,000 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Outdoor Life for $14 each. Outdoor Life will pay $3.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.50 per binding. Read the requirements. Submit test Requirement 1. Outdoor Life's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $1,800 of fixed overhead. Prepare an analysis to show whether the company should make or buy the bindings. (Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy.) Incremental Analysis Outsourcing Decision Make Bindings Buy (Outsource) Bindings Difference Variable Costs Plus: Fixed Costs Total cost of 20,000 bindings Decision: Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3,400 to profit. Total fixed costs will be the same as if Outdoor Life had produced the bindings. Show which alternative makes the best use of Outdoor Life's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. (Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar.) Incremental Analysis (a) Make Outsourcing Decision Binding Buy (Outsource) Bindings (b) Leave (c) Make Facilities Idle Another Product Data table - X Variable Costs Plus: Fixed Costs Total cost of 20,000 bindings Less: Profit from another product Net cost Decision: Direct materials. $ 20,000 Direct labor 80,000 Variable manufacturing overhead 40,000 80,000 Fixed manufacturing overhead $ 220,000 Total manufacturing costs Cost per pair ($220,000 + 20,000) $ 11.00 Print Done
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Exploring the Impact of Saudi Arabia's Financial Market Reforms on Global Investment Opportunities. UNSDGs Focus: Goal 1 7 ( Partnerships for the Goals ) , Goal 8 ( Decent Work and Economic Growth )...
-
Consider the Region R bounded by the curves Y=I, X=1, x^2+y^2 =1 i. Find the Centroid R (ii) Find the Centroid of 3 dimensional fold made by rotating R about the y-axis
-
Wesfarmers Limited (Australian listed company: ASX WES) is a key operator in the Australian retail space and with diverse operations including industrial manufacture, fertilisers and chemicals and...
-
The University of Professional Studies, Accra (UPSA) is a public university in Ghana. UPSA is the first university in Ghana to provide both academic and business professional education. The...
-
Some colleges now allow students to rent textbooks for a semester. Suppose that 38% of all students enrolled at a particular college would rent textbooks if that option were available to them. If the...
-
Complete the induction argument in the proof of Theorem 2.7.
-
The transactions below are for the business Consulting Services Ltd owned by Jere Duckin. The business began on 1 September 20x8 and has been operating for one month. The following transactions took...
-
Label each of the following accounts as an asset (A), liability (L), owners equity (OE), revenue (R), or expense (E). Indicate the financial statement on which the account belongsincome statement...
-
Use the rhombus VWXY from Example 3 to find each measure. 1. mZVYX 2. mZXYZ 6m-12 W (9n+4) Z 4m+4 X (3n2-0.75)
-
Both Bond Sam and Bond Dave have 12.4 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 5 years to maturity, whereas Bond Dave has 22 years to maturity. Both bonds...
-
This question has three parts (2 points per part). Gavin Corporation has two divisions (A & B), whose managers are evaluated independently based, in part, upon their own division's net operating...
-
Deterministic optimal growth model. Let 1- 7 A representative individual solves subject to f(k) max c Jo 1-e-ak x fe-Pu(ci)dt k = f(ke) - ce (a) Write the appropriate Hamiltonian (b) State the...
-
Child Labor Laws in American History YouTube: https://www.youtube.com/watch?v=CTYkW5K2mn4&t=35s History of Labor in the US https://www.youtube.com/watch?v=MH6aPJucdV4 1. Watch and take notes during...
-
You work for ESKOM in South Africa as a manager. Critically discuss the action that managers must take when their organisation experiences failure. Use relevant examples to support your answer.
-
At the end of the current year, Accounts Receivable has a balance of $950,000, Allowance for Doubtful Accounts has a credit balance of $8,500, and sales for the year total $4,280,000. Using the aging...
-
Then make a list of at least five strategies a company can implement to create an ethical culture.
-
Why should you not model a decision variable as a random variable with a probability distribution?
-
Lomax Company typically acquires a large number of individually insignificant properties each year. In computing impairment, Lomax groups these properties by year of acquisition. During 2015, Lomax...
-
On January 1, 2010, Local Petroleum entered into a concession agreement with the government of Egypt and paid a \($3,000,000\) signing bonus. The agreement covers 20,000 acres, has a term of five...
-
Opaque Corporation purchased land in fee for \($420,000\). The land was located in a remote area in Oklahoma. An appraiser estimated the fair market value of the surface rights to be \($200,000\)....
Study smarter with the SolutionInn App