COMPUTER CASE COST 1, Relevant Costing Due: Nov 18 (upload into Canvas) Carvsters Inc. sells a wide variety of drums, bin, boxes and other containers that are used in the chemical Industry, One of the company's products is a heavy-duty corrosion-resistant metal drum, called the WD drum used to store toxic waste, Production is constrained by the capacity of an automated welding machine, which has a maximum capacity of 2,000 hours of welding time available. Each drum requires 0,40 hour of welding time, and production is currently maximized. At present, the welding machine is ed exclusively to make WD drums. The accounting department has provided the following financial data concerning WD drums WD Drums Selling price per drum $ 149.00 Cost per drum 52.10 3.60 Direct Materials Direct Labor 1515/houn Manufacturing Overheid Selling and Admin Margin perdium 4.50 3.0 90.00 9.00 Management lieves that a total of 6.000 W ums could be cold each yew if the company had sufficient capacity Asanie to ninether welding machine, morcement has considered trying additional drums from antiken, Bewer industries Bester would be able to provide to 4000 W Type der er at prior of 1 per aum, which are wote normal sales price after being Metroduction manager, hated that the company could make use of the welding machine by manufacturing bike frames, which would require only G 50 of welding me porte and yet well for more than dr. Mellha believes that are could 1.600 bin frames per year to manufacturers at a price of 299 nach The counting porment has provided the following data concerning procese product 52100 mes Selling Derrame Cost pe frame Direct Mana Detabo Sur Man Overhead land me Margame 5 $ $ 16.00 5 47.21200 the best produced with Minulla on the Most the man who at there the factory of the most Thu 1.15 The bike frames could be produced with existing equipment and personnel. Manufacturing overhead is allocated to products on the basis of labor hours. Most of the manufacturing overhead consists of fixed common costs such as rent on the factory building, but some of it is variable. The variable manufacturing overhead has been estimated at 1.35 per WD drum and 190 The variable manufacturing overhead cost would not be incurred on drums acquired from the outside supplier. Seling and administrative expenses are allocated to products on the basis of the revenues. Almost all of the selling and administrative expenses are fixed common costs, but it has been estimated that variable selling and administrative expenses amount to 0.75 per drum whether made or purchased and would be 1.30 per frame All of the company's employees direct and indirect- are paid for full 0-hour workweeks and the company has a polley of laying off workers only in major recessions 1. Compute the impacts and recommend to management which strategy would result in the highest profits to Drummond Requirement 1: Make or buy the drums for some combination this in sheet 2) Requirement 2. Produce only the bike frames (sheet 3] Requirement 3: Make/buy combination of drums and frames (sheet 4) 2. What non-quantifiable factors should be considered and why? Requirement 4: Write a condusion for management (sheet 5) SET UP YOUR EXCHWORKBOOK AS FOLLOWS Sheet 1: Inputs this sheet) Sheet2 Relevant costs - Mate drum or buy drums for some combination Sheet 3: Produce only bike frames Sheets Combination of alternatives what is best course of action for company. How many drum and/or be frames should the company make or buy? Sheets wien cerchison etter to management entifying what Canisters should do and non quantifiable factors there to reference your numbers computed on theets through in your condon Please submit your work under awignments in Cowes and name your file with the last names of your partner for sample Smith Jones site only one trong member should submit the analysis Instructions All the inputs you need to complete the case are highted in blue on this sheet. You need to link foot ference to these numbers when reporine You are Carly how your computation for croit ou reed to compute esamol) total costs of direct materias you would show the calculation as follows: Directa Cost per unit Buits Total cost of Direct materials XX COMPUTER CASE COST 1, Relevant Costing Due: Nov 18 (upload into Canvas) Carvsters Inc. sells a wide variety of drums, bin, boxes and other containers that are used in the chemical Industry, One of the company's products is a heavy-duty corrosion-resistant metal drum, called the WD drum used to store toxic waste, Production is constrained by the capacity of an automated welding machine, which has a maximum capacity of 2,000 hours of welding time available. Each drum requires 0,40 hour of welding time, and production is currently maximized. At present, the welding machine is ed exclusively to make WD drums. The accounting department has provided the following financial data concerning WD drums WD Drums Selling price per drum $ 149.00 Cost per drum 52.10 3.60 Direct Materials Direct Labor 1515/houn Manufacturing Overheid Selling and Admin Margin perdium 4.50 3.0 90.00 9.00 Management lieves that a total of 6.000 W ums could be cold each yew if the company had sufficient capacity Asanie to ninether welding machine, morcement has considered trying additional drums from antiken, Bewer industries Bester would be able to provide to 4000 W Type der er at prior of 1 per aum, which are wote normal sales price after being Metroduction manager, hated that the company could make use of the welding machine by manufacturing bike frames, which would require only G 50 of welding me porte and yet well for more than dr. Mellha believes that are could 1.600 bin frames per year to manufacturers at a price of 299 nach The counting porment has provided the following data concerning procese product 52100 mes Selling Derrame Cost pe frame Direct Mana Detabo Sur Man Overhead land me Margame 5 $ $ 16.00 5 47.21200 the best produced with Minulla on the Most the man who at there the factory of the most Thu 1.15 The bike frames could be produced with existing equipment and personnel. Manufacturing overhead is allocated to products on the basis of labor hours. Most of the manufacturing overhead consists of fixed common costs such as rent on the factory building, but some of it is variable. The variable manufacturing overhead has been estimated at 1.35 per WD drum and 190 The variable manufacturing overhead cost would not be incurred on drums acquired from the outside supplier. Seling and administrative expenses are allocated to products on the basis of the revenues. Almost all of the selling and administrative expenses are fixed common costs, but it has been estimated that variable selling and administrative expenses amount to 0.75 per drum whether made or purchased and would be 1.30 per frame All of the company's employees direct and indirect- are paid for full 0-hour workweeks and the company has a polley of laying off workers only in major recessions 1. Compute the impacts and recommend to management which strategy would result in the highest profits to Drummond Requirement 1: Make or buy the drums for some combination this in sheet 2) Requirement 2. Produce only the bike frames (sheet 3] Requirement 3: Make/buy combination of drums and frames (sheet 4) 2. What non-quantifiable factors should be considered and why? Requirement 4: Write a condusion for management (sheet 5) SET UP YOUR EXCHWORKBOOK AS FOLLOWS Sheet 1: Inputs this sheet) Sheet2 Relevant costs - Mate drum or buy drums for some combination Sheet 3: Produce only bike frames Sheets Combination of alternatives what is best course of action for company. How many drum and/or be frames should the company make or buy? Sheets wien cerchison etter to management entifying what Canisters should do and non quantifiable factors there to reference your numbers computed on theets through in your condon Please submit your work under awignments in Cowes and name your file with the last names of your partner for sample Smith Jones site only one trong member should submit the analysis Instructions All the inputs you need to complete the case are highted in blue on this sheet. You need to link foot ference to these numbers when reporine You are Carly how your computation for croit ou reed to compute esamol) total costs of direct materias you would show the calculation as follows: Directa Cost per unit Buits Total cost of Direct materials XX