Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Daunlar Data Table X Direct materials $ 17,500 Direct labor 3,000 Variable manufacturing overhead 3,230 7,050 Fixed manufacturing overhead.. $ 30,780 Total manufacturing costs Cost

image text in transcribed
image text in transcribed
image text in transcribed
Daunlar Data Table X Direct materials $ 17,500 Direct labor 3,000 Variable manufacturing overhead 3,230 7,050 Fixed manufacturing overhead.. $ 30,780 Total manufacturing costs Cost per pair ($30,780 / 1,900) $ 16.20 Print Done Question Help wid Ride manufactures snowboards. Its cost of making 1.900 bindings is as follows: Click the icon to view the costs) Suppose an outside supplier will sell bindings to Wild Ride for 517 each wid Ride will pay $2.00 per unit to transporte bindings to its manufacturing plant, where it will add its own logo at a cost of $0.60 per binding Read the girements Requirement 1. Wid Ride's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid 2.300 of food overhead. Prepare an analysis to show whether Wild Ride should make or buy the bindings. (Entra for any zero balance. Round any per unit amounts to the nearest cent and your final as to the nearest whole dolar. Use a mission of parentheses in the Difference column when the cost to make exceeds the cost to buy.) Incremental Analysis Make Buy Outsource Outsourcing Decision Bindings Bindings Difference Variable costs Plus Ford Costs Total cost of 1.500 bindings Decision Requirement 2. The facilities froed by purchasing bindings from the outside suppler can be used to manufacture another product that will contribute $3,100 to profit. Total fixed costs will be the same as I wad Rice nad produced the bindings. Show which alomative makes the best use of Wild Rides facilities (a) make bindings. (b) buy bindings and leave facilities ide, or (e) buy bindings and make another product (Enter a "O" for any zero balance. Round any Enter any number in the edit fields and then continue to the next question wid Ride manufactures snowboards. Its cost of making 1.900 bindings is as follows: Click the icon to view the costs) Suppose an outside supplier will sel bindings to Wid Ride for $17 each. Wid Ride will pay $2.00 per unit to transport the bindings to ts manufacturing plane, where will add its own logo at a cost of 50.00 per binding Read the requirements Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute 53,100 to proft. Toll fred costs will be the same as Wild Ride had produced bindings Show which alternative makes the best use of Wild Rides faciles make bindings) buy bindings and leave for (c) buy bindings and make another product (Entera o for any or balance. Roundary per unit amounts to the nearest cent and your final answers to the nearest whole dollar) Buy Outsource) Bindings Incremental Analysis (b) Leave (c) Make Outsourcing Decision Binding Facilities idle Another Product Variable Costs Plus Ford Costs Total cost of 1.900 bindings Less: Profit from another product Netcost Decision ton

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Intermediate Accounting Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

12th Canadian edition

978-1119496496

Students also viewed these Accounting questions