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Answer: Brown Ltd is considering whether they should continue making product A in-house or outsource it. The company has a policy to allocate total overhead
Answer: Brown Ltd is considering whether they should continue making product A in-house or outsource it. The company has a policy to allocate total overhead expenses to the product lines. In the last year, product A was charged with total overhead costs of N$30,000, which were made up of: Depreciation of office computers - N$3,000; Line manager's salary - N$10,000; general factory overheads - N$10,000; Product A storeroom, 7,000. Required: Calculate the difference between the relevant cost of making Product A in-house and the net profit of Brown Ltd. NB: You are not required to enter the unit or currency symbol. Provide your answer in numerical form, with no spaces in between. For example: 1000. Answer: PREVIOUS PAGE NEXT PAGE Answer: Brown Ltd is considering whether they should continue making product A in-house or outsource it. The company has a policy to allocate total overhead expenses to the product lines. In the last year, product A was charged with total overhead costs of N$30,000, which were made up of: Depreciation of office computers - N$3,000; Line manager's salary - N$10,000; general factory overheads - N$10,000; Product A storeroom, 7,000. Required: Calculate the difference between the relevant cost of making Product A in-house and the net profit of Brown Ltd. NB: You are not required to enter the unit or currency symbol. Provide your answer in numerical form, with no spaces in between. For example: 1000. Answer: PREVIOUS PAGE NEXT PAGE
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