2. Sheffield Corp., Inc. can produce 100 units of a component part with the following costs:

Direct Materials	$15000
Direct Labor	6500
Variable Overhead	13000
Fixed Overhead	11000

If Sheffield Corp. can purchase the component part externally for $40000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision?

Buy and save $5500

Buy and save $1500

Make and save $1500

Make and save $1500

12. Bonita Industries applies overhead on the basis of 200% of direct labor cost. Job No. 305 is charged with $360000 of direct materials costs and $400000 of manufacturing overhead. The total manufacturing costs for Job No. 305 is:

$1120000

$760000

$960000

$1160000

15. Marigold Company assigns overhead based on machine hours. The Milling Department logs 2450 machine hours and Cutting Department shows 4020 machine hours for the period. If the overhead rate is $7 per machine hour, the entry to assign overhead will show a

credit to Work in ProcessCutting Department for $28140.

debit to Manufacturing Overhead for $45290.

credit to Manufacturing Overhead for $45290.

debit to Work in Process for $28140.

16. A process with no beginning work in process, completed and transferred out 34300 units during a period and had 14500 units in the ending work in process that were 40% complete. How much is equivalent units of production for the period for conversion costs?

28500 equivalent units.

48800 equivalent units.

40100 equivalent units.

54600 equivalent units.

17. A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of July, there was no beginning work in process; 40400 units were completed and transferred out; and there were 20900 units in the ending work in process that were 50% complete. During July, $245200 materials costs and $223740 conversion costs were charged to the department. The unit production costs for materials and conversion costs for July were

Materials

Conversion Costs

$4.00

$4.40

$4.82

$3.65

$6.07

$5.54

$4.00

$3.65