Question
Bonitas Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $119000 Direct Labor 24000 Variable Overhead 53000
Bonitas Manufacturing Company can make 100 units of a necessary component part with the following costs:
| Direct Materials | $119000 |
| Direct Labor | 24000 |
| Variable Overhead | 53000 |
| Fixed Overhead | 30000 |
If Bonitas Manufacturing Company can purchase the component externally for $195000 and only $6000 of the fixed costs can be avoided, what is the correct make-or-buy decision?
|
| Buy and save $22000 |
|
| Buy and save $7000 |
|
| Make and save $22000 |
|
| Make and save $7000 |
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Fundamentals Of Auditing
Authors: Basu
1st Edition
8131728854, 978-8131728857
