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0 1 2 3 4 5 LG 17 18 die cost of producing the component internally Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing
0 1 2 3 4 5 LG 17 18 die cost of producing the component internally Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable" Fixed manufacturing overhead, common but allocated Total cost 27 Supplier price 28 29 30 31 19 20 21 Required: Units used per year The fixed manufacturing overhead, traceable Depreciation of equipment (no resale value) Supervisor salary 22 1. Assuming the company has no alternative use for the facilities now being used to produce the component, complete the following analysis to determine if the outside supplier's offer should be accepted. 24 25 (Use cells A6 to 819 from the given information to complete this question. Blank or zero value answers should be entered as =0.) 26 32 Variable manufacturing overhead 33 38 3.9 40 41 Cost of purchasing Direct materials Direct labor 34 35 Total costs Fixed manufacturing overhead, traceable Fixed manufacturing overhead, common 46 47 7 Alanca should $4.00 6.00 2.00 5.00 8.00 $25.00 V $21.00 F 12,000 30% 70% 36 37 2. Based on this analysis, determine if Alanco should make or buy the component. Per Unit Differential Cost Make Buy the component. 12.000 units Make Buy 42 43 Students. The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work. 44 Nothing in this area will be graded, but it will be submitted with your assignment. 45
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