Question
arences Mailings Review View Tell me A- EE Document2 Abd AaBbCcD A AaBb c 24.9% Bottom of Form 31 John Corporation makes 44,000-tiny wheels to
arences Mailings Review View Tell me A- EE Document2 Abd AaBbCcD A AaBb c 24.9% Bottom of Form 31 John Corporation makes 44,000-tiny wheels to be used in the production of its Beautiful Product. The average cost per tiny wheel at this level of activity is: Direct materials Direct labor $10.30 $ 9.30 Variable manufacturing overhead$ 3.85 Fixed manufacturing overhead $ 4.80 An outside manufacturer, called BestWheel, recently began producing a comparable tiny wheel that could-be used in the Beautiful Product. The price offered to john Corporation to- supply them with this tiny wheel is $26.35. If Emstmi808 Corporation decides not to make the wheels, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. Direct labor is a variable cost in this company. Q) What would be the annual financial advantage (disadvantage) for Emstmi808 as a result of continuing to make the wheels rather than buying them from the outside supplier? Top of Form Bottom of Form 1 Multiple Choice ..$297,000% $211,200 ($83,600) $127,600 Keep Source Formatting Match Destination Formatting CA Keep T A AD
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