Course Home X P Do Homework - Chapter M-10 x Dashboard C A mylab.pearson.com/Student/PlayerHomework.aspx?homeworkld=642070127&questionld=1&flushed=false&cld=7269176¢erwin=yes * 0 m : 23/WI Introduction to Managerial Accounting Ali Hamade 05/01/23 3:15 PM Question 2, PM10-25A (similar to) HW Score: 0%, 0 of 25 points Homework: Chapter M-10 Comprehensive Problems o Save Part 1 of 4 Points: 0 of 15 Winter Sports manufactures snowboards. Its cost of making 2, 100 bindings is as follows: Question list K (Click the icon to view the costs.) Suppose Lewis will sell bindings to Winter Sports for $12 each. Winter Sports would pay $3 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.40 per binding. O Question 1 Read the requirements. Question 2 Requirement 1. Winter Sports' accountants predict that purchasing the bindings from Lewis will enable the company to avoid $2,400 of fixed overhead. Prepare an analysis to show whether Winter Sports should make or buy the bindings. (Only enter the net relevant costs. For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the bindings X Make Outsource Difference Data table Binding costs Bindings Bindings (Make-Outsource) Variable costs: Direct materials $ 17,530 Direct materials Direct labor Direct labor 2,700 Variable overhead 2,100 Variable overhead Fixed overhead 6.500 Fixed costs Total manufacturing costs for 2,100 bindings $ 28,830 Purchase price from Lewis Transportation Logo Total differential cost of 2, 100 bindings Print Done X Requirements 1. Winter Sports' accountants predict that purchasing the bindings from Lewis will enable the company to avoid $2,400 of fixed overhead. Prepare an analysis to show whether Winter Sports should make or buy the bindings. 2. The facilities freed by purchasing bindings from Lewis can be used to manufacture another product that will contribute $2,900 to profit. Total fixed costs will be the same as if Winter Sports had produced the bindings. Show which alternative makes the best use of Winter Sports' facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. Print Done Clear all Check