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answer the question in english,show complete answer and formula QUESTION 21 Ginger Company produces 8,000 units of 87Q material a year. This 87Q is a
answer the question in english,show complete answer and formula
QUESTION 21 Ginger Company produces 8,000 units of 87Q material a year. This 87Q is a material used in some of the products of Ginger Company. Cost per unit for production of 87Q is; Direct material Direct labour Variable Overhead Fixed Overhead RM 5.00 2.00 1.00 1.50 The fixed overhead directly involved with the production of the 87Q material is only RM2,400 (avoidable fixed costs) while the rest is a fixed overhead shared. The external supplier makes an offer to supply the same material with 87Q at RM9 for the production of Ginger Company products. INSTRUCTIONS: Determine whether Ginger Company should buy or create the 87Q material. (CLO3, C4)Step by Step Solution
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