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Chenango Industries uses 1 0 units of part JR 6 3 each month in the production of radar equipment. The cost of manufacturing one unit

Chenango Industries uses 10 units of part JR63 each month in the production of radar equipment. The cost of manufacturing one unit
of JR63 is the following:
Required 1
:.....
Required 3
Assume Chenango Industries is able to rent out all its idle capacity for $86,000 per month. If Chenango Industries decides to
purchase the 10 units from Scott Supply, Chenango's monthly cost for JR63 would increase (or decrease) by what amount?
per month
Material handling represents the direct variable costs of the Receiving Department that are applied to
components on the basis of their cost. This is a separate charge in addition to manufacturing overhea
manufacturing overhead budget is one-third variable and two-thirds fixed. Scott Supply, one of Chena
has offered to supply part number JR63 at a unit price of $56,000.
Required:
If Chenango Industries purchases the JR63 units from Scott, the capacity Chenango Industries used to manufacture these parts
would be idle. Should Chenango Industries decide to purchase the parts from Scott, the unit cost of JR63 would increase (or
decrease) by what amount?
Assume Chenango Industries is able to rent out all its idle capacity for $86,000 per month. If Chenango Industries decides to
purchase the 10 units from Scott Supply, Chenango's monthly cost for JR63 would increase (or decrease) by what amount?
Assume that Chenango Industries does not wish to commit to a rental agreement but could use its idle capacity to manufacture
another product that would contribute $170,000 per month. If Chenango's management elects to manufacture JR63 in order to
maintain quality control, what is the net amount of Chenango's cost from using the space to manufacture part JR63?
Complete this question by entering your answers in the tabs below.
Required 1
If Chenango Industries purchases the JR63 units from Scott, the capacity Chenango Industries used to manufacture these
parts would be idle. Should Chenango Industries decide to purchase the parts from Scott, the unit cost of JR63 would increase
(or decrease) by what amount?
;
;
per unit
Complete this question by entering your answers in the tabs below.
Required 1, Required 2 Required 3
Assume that Chenango Industries does not wish to commit to a rental agreement but could use its idle capacity to
manufacture another product that would contribute $170,000 per month. If Chenango's management elects to manufacture
JR63 in order to maintain quality control, what is the net amount of Chenango's cost from using the space to manufacture
part JR63?
Net cost of using limited capacity to produce part JR63
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