Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer all correcr for a thumbs up Beto Company pays $5.90 per unit to buy a part for one of the products it manufactures. With

answer all correcr for a thumbs up
image text in transcribed
image text in transcribed
Beto Company pays $5.90 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is considering making the part. Making the part would cost $6.30 per unit for direct materials and $1.00 per unit for direct labor. The compary normally applies overhead at the predetermined rate of 200% of direct labor cost Incremental overhed to make the pair wotild be 805 of direct labor cost. (a) Prepare a make or biy analysis of costs for this part, (Enter your answers rounded to 2 decimal places.) (b) Should Beto make or buy the part? Zycon has produced 8,000 units of raw milk at a $16,000 cost. These units can be sold as is to another manufocturier for $9600 Instead, Zycon can process the units further and produce yogurt. Processing further will cost an additional $12,800 and wall yerid revenues of $24,000 Identify whether each of the following is relevant or not relevant to the sell or process further decision

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

How To Audit Document Control System Based On ISO 9001 2015

Authors: Folarin Omojoye

1st Edition

B09892NF88, 979-8525615175

More Books

Students also viewed these Accounting questions

Question

Let {X(t), Answered: 1 week ago

Answered: 1 week ago

Question

explain what is meant by redundancy

Answered: 1 week ago