Assume a company is considering buying 10.000 units of a component part rather than making them. A supplier has agreed to sell the company 10.000 units for a price of $41.25 per unit. The company's accounting system reports the following costs of making the parti Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost Per Unit $16 12 2 8 4 $42 10,000 Units per Year $160, een 120,000 20,000 Be,eee 40,000 $420,000 One-half of the traceable fixed manufacturing overhead relates to supervisory saloties and the remainder relates to depreciation of equipment with no salvage value. If the company chooses to buy this component part from a supplier, then the supervisor who oversees its production would be discharged. What is the financial advantage (disadvantage) of buying 10,000 units from the suppller? 7 Ascomycose buvo 10.000 nota component power than making them was gred to set the com price of Susperunt. The company counting system reports the following costs of taking the art 1. Unite Per unit per Year Direct materiale 136 $160,000 Direct labor 12 120,000 Variable manufacturing overhead 20.000 Fixed manufacturing overhead, traceable a 30.000 Fixed manufacturing overhead, allocated 4 40,000 Total cost 142 $420,000 One half of the traceable Rived manufacturing overhead relates to supervisory and the remainder relates to depreciation of ement with no savage value. If the company chooses to buy this component port from a suppliec then the supervisor who oversees its production would be caged. What is the financial advantage disadvantage of buying 10,000 is from the supplier Assume a company is considering buying 10.000 units of a component part rather than making them. A supplier has agreed to sell the company 10.000 units for a price of $41.25 per unit. The company's accounting system reports the following costs of making the parti Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost Per Unit $16 12 2 8 4 $42 10,000 Units per Year $160, een 120,000 20,000 Be,eee 40,000 $420,000 One-half of the traceable fixed manufacturing overhead relates to supervisory saloties and the remainder relates to depreciation of equipment with no salvage value. If the company chooses to buy this component part from a supplier, then the supervisor who oversees its production would be discharged. What is the financial advantage (disadvantage) of buying 10,000 units from the suppller? 7 Ascomycose buvo 10.000 nota component power than making them was gred to set the com price of Susperunt. The company counting system reports the following costs of taking the art 1. Unite Per unit per Year Direct materiale 136 $160,000 Direct labor 12 120,000 Variable manufacturing overhead 20.000 Fixed manufacturing overhead, traceable a 30.000 Fixed manufacturing overhead, allocated 4 40,000 Total cost 142 $420,000 One half of the traceable Rived manufacturing overhead relates to supervisory and the remainder relates to depreciation of ement with no savage value. If the company chooses to buy this component port from a suppliec then the supervisor who oversees its production would be caged. What is the financial advantage disadvantage of buying 10,000 is from the supplier
