Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(b) is correct, I just need the rest of the chart for (a). Exercise 20-8 Your answer is partially correct. Try again Innova uses 1,010

image text in transcribed(b) is correct, I just need the rest of the chart for (a).

Exercise 20-8 Your answer is partially correct. Try again Innova uses 1,010 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufacture the component are as follows Direct materials $61.02 Direct labor Overhead Total 35.78 126.50 $223.30 Overhead costs include variable material handling costs of $7.34, which are applied to products on the basis of direct material costs. The remainder of the overhead costs are applied on the basis of direct labor dollars and consist of 60% variable costs and 40% fixed costs A vendor has offered to supply the IMC2 component at a price of $270 per unit Prepare the incremental analysis for the decision to make or buy IMC2 Net Income Increase (Decrease) Make IMC2 (per unit) Buy IMC2 (per unit) Direct material 61.02 0 61.02 Direct labor 35.78 0 35.78 Material handling 7.34 0 7.34 Variable overhead Purchase price 0 223.30 223.30 Total unit cost 223.30 Should Innova purchase the component from the outside vendor if Innova's capacity remains idle? No Click if vou would like to Show Work for this question: Onen Show Work

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Solve the following 1,4 3 2TT 5x- 1+ (15 x) dx 5X

Answered: 1 week ago