Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer A and B Part 167 is thed in one of Broce Corporations prochets. The company Accounting Department sports the following costs of producing the

image text in transcribed
image text in transcribed
image text in transcribed
answer A and B
Part 167 is thed in one of Broce Corporations prochets. The company Accounting Department sports the following costs of producing the 16,000 units of the part that are needed every year Direct materials Direct labor Variable overhead Supervisorsalary Depreciation of special equipment Allocated general overhead $ 2.0 3. 16.20 5.7.20 $ 3.0 5 5.40 An outside supplier has offered to make the part and sell it to the company for $28.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $22.000 of these allocated general overhead costs would be avoided Required: a. Prepare a report that shows the financial impact of buying part U67 from the supplier rather than continuing to make it inside the company b. Which alternative should the company choose? Complete this question by entering your answers in the tabs below. Required A Required B Prepare a report that shows the financial impact of buying part 167 from the supplier rather than continuing to make it inside the company Miko Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Outside purchase price Total cost Required B > Complete this question by entering your answers in the tabs below. Required A Required B Which alternative should the company choose? Tholul, the company should The total cost of the mako alfomative in

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting Chapters 1-9

Authors: James A. Heintz, Robert W. Parry

22nd Edition

1305666186, 9781305666184

More Books

Students also viewed these Accounting questions

Question

How did the authors address the fallacy of homogeneity?

Answered: 1 week ago