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CALCULATOR SCREENIN Pottery Ranch Inc. has been manufacturing its fins for its curtain rods. The company is currently operating at 100% of capacity and variable

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CALCULATOR SCREENIN Pottery Ranch Inc. has been manufacturing its fins for its curtain rods. The company is currently operating at 100% of capacity and variable manufacturing overhead is charged to production at the rate of direct labor cost. The direct materials and direct labor cost per un to make a pair of finisare 4 and 55, respectively. Normal production is 31,100 curtain rods per year. A supplier offers to make a pair of finals at a price of $13.30 per unit. Pottery Ranch accepts the suppliers offer, all variable manufacturing costs will be eliminated, but the $47,500 of fixed manufacturing overhead currently being charged to the finals will have to be absorbed by other products. (a) Prepare the incremental analysis of the decision to make or buy the parentheses . (15)) r e Buy Net Income Increase (Decrease) Direct materials Direct labor Variable overhead costs Fixed manufacturing costs Purchase price Total annual cost 20-15 Total annual cost ults by Study (b) Should Pottery Ranch buy the finials? Pottery Ranch should the finials. (c) Would your answer be different in (b) if the productive capacity released by not making the finials could be used income would Click if you would like to Show Work for this question: Open Show Work Ques ype here to search CALCULATOR SCREENIN Pottery Ranch Inc. has been manufacturing its fins for its curtain rods. The company is currently operating at 100% of capacity and variable manufacturing overhead is charged to production at the rate of direct labor cost. The direct materials and direct labor cost per un to make a pair of finisare 4 and 55, respectively. Normal production is 31,100 curtain rods per year. A supplier offers to make a pair of finals at a price of $13.30 per unit. Pottery Ranch accepts the suppliers offer, all variable manufacturing costs will be eliminated, but the $47,500 of fixed manufacturing overhead currently being charged to the finals will have to be absorbed by other products. (a) Prepare the incremental analysis of the decision to make or buy the parentheses . (15)) r e Buy Net Income Increase (Decrease) Direct materials Direct labor Variable overhead costs Fixed manufacturing costs Purchase price Total annual cost 20-15 Total annual cost ults by Study (b) Should Pottery Ranch buy the finials? Pottery Ranch should the finials. (c) Would your answer be different in (b) if the productive capacity released by not making the finials could be used income would Click if you would like to Show Work for this question: Open Show Work Ques ype here to search

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