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16 of 25 Could you help me plz? Pottery Ranch inc, has been manufacturing its own finials for its curtain rods. The company is currently
16 of 25
Pottery Ranch inc, has been manufacturing its own finials for its curtain rods. The company is currently operating at 10096 of capacity, and variable manufacturing overhead is charged to production at the rate of 65% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $4 and $5, respectively. Normal production is 29.700 curtain rods peryear. A supplier offers to make a pair of finials at a price of $13.05 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $43,000 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. (a) Prepare the incremental analysis for the decision to make or buy the finials, (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45)) (b) Should Pottery Ranch buy the finials? Pottery Ranch should the finist (c) Would your answer be different in (b) if the productive copacity released by ave making the finials could be used to produce income ot 330.660 ? (b) Should Pottery Ranch buy the finials? Pottery Ranch should the finiats. Pottery Ranch inc, has been manufacturing its own finials for its curtain rods. The company is currently operating at 10096 of capacity, and variable manufacturing overhead is charged to production at the rate of 65% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $4 and $5, respectively. Normal production is 29.700 curtain rods peryear. A supplier offers to make a pair of finials at a price of $13.05 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $43,000 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. (a) Prepare the incremental analysis for the decision to make or buy the finials, (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45)) (b) Should Pottery Ranch buy the finials? Pottery Ranch should the finist (c) Would your answer be different in (b) if the productive copacity released by ave making the finials could be used to produce income ot 330.660 ? (b) Should Pottery Ranch buy the finials? Pottery Ranch should the finiats Could you help me plz?
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