Answered step by step
Verified Expert Solution
Question
1 Approved Answer
all data are provide 2 of 9 (8 complete) E11-25 (similar to) The Serendipity Corporation manufactures cellular modems. It manufactures its own cellular modem circut
all data are provide
2 of 9 (8 complete) E11-25 (similar to) The Serendipity Corporation manufactures cellular modems. It manufactures its own cellular modem circut boards (CMCB), an important part of the cellular modem. It reports the following cost information about the costs of making CMCBS in 2017 and the expected costs in 2018 E(Click the icon to view the costs) (Cick the icon to view the make-versus-buy information ) Read the requirements Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBS in 2018. Total Manufacturing Manufacturing Costs of CMCB Cost per Unit Direct materials Direct manufacturing labor Variable batch manufacturing costs Foxed manufacturing costs Avoidable fixed manufacturing costs Unavoidable foced manufacturing costs Total manufacturing costs Enter any number in the edit fields and then click Check Answer an X in i Data Table Current Costs Expected Costs st p in 2017 in 2018 turin CB Variable manufacturing costs Direct material cost per CMCB 175 $ 195 Direct manufacturing labor cost per CMCB 45 41 Variable manufacturing cost per batch for setups, materials handling, and quality control 1,800 1,500 Fixed manufacturing cost Fixed manufacturing overhead costs that can be avoided if CMCBS are not made 400,000 270,000 Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBS are not made 700,000 630,000 Answe Print Done it of making CMCRS in 2018 X Manufa More Info Cost p Serendipity manufactured 5,000 CMCBS in 2017 in 25 batches of 200 each. In 2018, Serendipity anticipates needing 9,000 CMCBS. The CMCBS would be produced in 90 batches of 100 each. The Marrow Corporation has approached Serendipity about supplying CMCBS to Serendipity in 2018 at $290 per CMCB on whatever delivery schedule Serendipity wants Print Done - X Requirements Calculate the total expected manufacturing cost per unit of making CMCBS in 2018. 2. Suppose the capacity currently used to make CMCBS will become idle if Serendipity purchases CMCBS from Marrow. On the basis of financial considerations alone, should Serendipity make CMCBS or buy them from MarrOw? Show your calculations. 3. Now suppose that if Serendipity purchases CMCBs from Marrow, its best alternative use of the capacity currently used for CMCBS is to make and sell special circuit boards (CB3s) to the Electronic Corporation. Serendipity estimates the following incremental revenues and costs from CB3 1. Total expected incremental future revenues Total expected incremental future costs $1,900,000 $2,050,000 On the basis of financial considerations alone, should Serendipity make CMCBS or buy them from Marrow? Show your calculations. Print Done Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started