Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you please answer the yellow boxes with formulas? Thank you! Alanco, Ino, manufactures a variety of products and is currently maunfacturing all of its

Can you please answer the yellow boxes with formulas? Thank you!
image text in transcribed
Alanco, Ino, manufactures a variety of products and is currently maunfacturing all of its own component parts. An outside supplier has offered to sell one of those components to Alanco. To evaluate this offer, the following information has been gathered relating to the cost of producing the component internally $ Unit-level Materials Unit-level Labor Unit-level Overhead Product-level Costs Allocated facility-level cost Total cost 4.00 6.00 2.00 5.00 8.00 25.00 Supplier price 21.00 Units used per year 12.000 Product-level costs 70% of these costs can be avoided by purchasing the component Supervisor salary 70% 1. Assuming the company has no alternative use for the facilities now being used to produce the component, complete the following analysis to determine if the outside supplier's offer should be accepted. 70% of these costs can be avoided by purchasing the component Supervisor salary 70% 1. Assuming the company has no alternative use for the facilities now being used to produce the component, complete the following analysis to determine if the outside supplier's offer should be accepted. Per Unit Differential Cost Make 12,000 units Make Cost of purchasing Unit-level Materials Unit-level Labor Unit-level Overhead Product-level Cost Allocated facility-level Costs Total costs Based on this analysis, write an if statement to determine if Alanco should make or buy the component. Alanco should the component

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

ACCA Approved Study Text P7 Advanced Audit And Assurance

Authors: BPP

1st Edition

1472744349, 978-1472744340

More Books

Students also viewed these Accounting questions

Question

Excel caculation on cascade mental health clinic

Answered: 1 week ago