Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assume that Sweet Nature reports the following relevant costs to make or buy a 17.5 oz. bottles for its Juice Cocktails: (Click the icon to
Assume that Sweet Nature reports the following relevant costs to make or buy a 17.5 oz. bottles for its Juice Cocktails: (Click the icon to view the costs.) Suppose Sweet Nature can use the released facilities in another manufacturing activity that makes a contribution to profits of $105,000 or can rent them out for $25,000. Requirement 1. Prepare a schedule that compares the four alternative courses of action. Which alternative would yield the lowest net cost? (Use parentheses or a minus when entering cost amounts. Leave unused cells blank.) Requirement 1. Prepare a schedule that compares the four alternative courses of action. Which alternative would yield the lowest net cost? (Use parentheses or a minus when entering cost amounts. Leave unused cells blank.) Buy and Buy and Use Buy and Leave Facilities for Rent Out Data table Make Facilities idle Other Activities Facilities Make Buy Total cost for Cost per Total cost for Cost per 950,000 Bottles Bottle 950,000 Bottles Bottle Purchase cost $ 237,500 $ 0.250 Net relevant costs Direct materials $ 77,900 $ 0.082 Direct labor 37,050 0.039 Variable factory overhead Avoidable annual fixed factory overhead 58,900 50,000 0.062 0.053 $ 223,850 $ 0.236 $ 0.250 Total relevant costs 237,500 $
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