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08:51 AM / Harringt 53 CALCULATOR BACK NEXT Question Kuhn Dicyce Company has been manufacturing its own seats for its bicydes. The company is currently
08:51 AM / Harringt 53 CALCULATOR BACK NEXT Question Kuhn Dicyce Company has been manufacturing its own seats for its bicydes. The company is currently operating at 100% capacity, and variable manufacturing overhead is charged to production at the rate of 60% of direct labor cost. The direct materials and direct labor cost per unit to make the bicycle seats are $8.00 and $9.00, respectively. Normal production is 50,000 bicycles per year. A supplier offers to make the bicyde seats at a price of $21 each. If the bicycle company accepts this offer, all variable manufacturing costs will be eliminated, but the $30,000 of fixed manufacturing overhead currently being charged to the bicycle seats will have to be absorbed by other products. Prepare the incremental analysis for the decision to make or buy the bicyde seats. (Enter negative amounts using either a negative sign preceding the number e.o. -45 or parentheses e.. (45). Do not leave any field blank. Enter o for the amounts.) Net Income Make Buy Increase (Decrease) Should Kuhn Bicyde Company buy the seats from the outside supplier? muhased from the outside supplier 7:54 AM
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