-75 Question 2 of 5 View Policies Current Attempt in Progress The management of Flint Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. The part called CISCO, is a component of the company's finished product The following information was collected from the accounting records and production data for the year ending December 31, 2017 1.8.100 units of CISCO were produced in the Machining Department, 2. Variable manufacturing costs applicable to the production of each CISCO unit were: direct materials $5,10, direct labor $4.89, indirect labor $0.42 utilities $0.35. 3. Fixed manufacturing costs applicable to the production of CISCO were: Cost Item Direct Allocated Depreciation $1.900 $930 Property taxes 470 400 Insurance 900 640 $3270 $1.970 All variable manufacturing and direct fixed costs will be eliminated if CISCO is purchased. Allocated costs will have to be absorbed by other production departments. Prepare an incrementalysis for CISCO famount decreases income the enter the amount using either a negative sig preceding the number 45 or parentheses (451) Make CISCO Net Income Increase Decrease Buy CISCO Directmate 550 3 $ Direct labor 439 0 Indirect labor 0.42 Uits 03 Depreciation 930 Property tas 470 Insurance 900 Auch right and to Receiving costs sich Based on your analysis, what decision should management make? The company should e Textbook and Media Would the decision be different if Flint Company has the opportunity to produce $3,000 of net income with the facilities currently being used to manufacture CISCO? e Textbook and Media Attempts: 0 of 3 used Submit Answer Save for Later Last saved 30 seconds ago Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. o et e LO 110F -75 Question 2 of 5 View Policies Current Attempt in Progress The management of Flint Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. The part called CISCO, is a component of the company's finished product The following information was collected from the accounting records and production data for the year ending December 31, 2017 1.8.100 units of CISCO were produced in the Machining Department, 2. Variable manufacturing costs applicable to the production of each CISCO unit were: direct materials $5,10, direct labor $4.89, indirect labor $0.42 utilities $0.35. 3. Fixed manufacturing costs applicable to the production of CISCO were: Cost Item Direct Allocated Depreciation $1.900 $930 Property taxes 470 400 Insurance 900 640 $3270 $1.970 All variable manufacturing and direct fixed costs will be eliminated if CISCO is purchased. Allocated costs will have to be absorbed by other production departments. Prepare an incrementalysis for CISCO famount decreases income the enter the amount using either a negative sig preceding the number 45 or parentheses (451) Make CISCO Net Income Increase Decrease Buy CISCO Directmate 550 3 $ Direct labor 439 0 Indirect labor 0.42 Uits 03 Depreciation 930 Property tas 470 Insurance 900 Auch right and to Receiving costs sich Based on your analysis, what decision should management make? The company should e Textbook and Media Would the decision be different if Flint Company has the opportunity to produce $3,000 of net income with the facilities currently being used to manufacture CISCO? e Textbook and Media Attempts: 0 of 3 used Submit Answer Save for Later Last saved 30 seconds ago Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. o et e LO 110F