Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you solve the questions step by step? A2 Office bags A company makes four types of leather bags and is considering whether it might

Can you solve the questions step by step?

image text in transcribed

image text in transcribed

image text in transcribed

A2 Office bags A company makes four types of leather bags and is considering whether it might be cheaper to buy them in rather than make all the bags themselves. The management accountant has obtained the following information: Satchel Direct materials Direct labour Variable production overhead Briefcase Handbag Laptop case 40 50 20 24 23 12 40 28 12 Total fixed overhead 400,000 98 14 16 12 1,600,00 1,200,00 800,00 0 0 0 95 45 75 Bought-in cost per item Production volumes - number of items 20,000 80,000 60,000 40,000 1. What is the total unit variable cost of each product in s? 96 A B D Briefcase Handbag Laptop Satchel case 107 68 110 40 50 20 40 76 87 48 80 correct 84 93 52 88 2. What is the total variable cost of each product in s? Briefcase Satchel Handbag Laptop case A 1,920,000 8,560,000 4,080,000 4,000,000 B 1,280,000, 5,840,000 1,920,000 2,720,000 1,520,000 6,960,000 2,880,000 3,200,000 correct D 1,680,000 7,440,000 3,120,000 3,520,000 3. What is the fully absorbed cost per unit in s? B Briefcase Handbag Laptop Satchel case 98 95 45 75 96 107 68 100 correct 20 20 20 32 34 36 32 20 4. What is the total cost of buying in each of the bags? Briefcase Handbag Laptop case Satchel . 2,360,000 9,200,000 3,900,000 3,800,000 B 1,960,000 7,600,000 2,700,000 3,000,000 correct 2,200,000 8,720,000 3,660,000 3,480,000 D 1,520,000 6,960,000 2.880,000 3,200,000 5. What products should be made or bought in? B Briefca Handbag Laptop Satchel case Make Buy Make Buy Make Make Buy Make Make Buy Buy Buy Make Make Buy Buy correct

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

More Books

Students also viewed these Accounting questions