ED V U E Beztomheducationcom C; (.9 [I] + 53 M lnbox (8) - silvia.domnic@gmail.com - G... a Mail - Silvia Domnic - Outlook Student - cambriancollegeca m McGraw Hill m Question 'I - Comprehensive Assignment... Comprehensive Assignment #2 0 Saved Help Save & Exit Submit Problem #1 1 Golfers, Inc. (GI) manufactures golf-related equipment including golf balls. This year's expected production of golf balls is 80,000 packs (each consisting of four golf balls). Cost data are as follows: Per 80,000 14 Pack Packs . ts Product costs directly traceable to balls: W'" Direct materials $2.50 $200,000 Direct labour 0.60 48, 000 Variable manufacturing overhead 0.20 16,000 _ Fixed manufacturing overhead 24. 000 5 General allocated overhead 22.400 Pm\" $310,400 The full cost of one pack of golf balls is $3.88. GI has received an offer from an outside supplier to supply any desired quantity of balls at a price of $3.90 per pack of four golf balls. The cost accounting department has provided the following information: a. The direct xed manufacturing overhead is the cost of leasing the machine that stamps out the balls. The machine can produce a maximum of 500,000 balls per year. lfthe balls are bought, the machine will no longer be needed. b. No other costs will be affected. Required: 1. Prepare an analysis showing whether GI would be better off making or buying the balls at a projected volume of 80,000 packs (320,000 golf balls). (Round "Per Unit" answers to 2 decimal places.) Purchase Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead % Prev 1 of 5 Next > E V ezto.mheducation.com + 88 M Inbox (8) - silvia.domnic@gmail.com - G... Mail - Silvia Domnic - Outlook Student - cambriancollege.ca M McGraw Hill M Question 1 - Comprehensive Assignment.. Comprehensive Assignment #2 i Saved Help Save & Exit Submit Required: 1. Prepare an analysis showing whether GI would be better off making or buying the balls at a projected volume of 80,000 packs (320,000 golf balls). (Round "Per Unit" answers to 2 decimal places.) 80,000 packs Difference 14 Per Unit Make Buy points Purchase Direct materials Direct labour Variable manufacturing overhead Print Fixed manufacturing overhead Common costs allocated to this product line Total costs 2-a. At what volume would GI be indifferent between making and buying? (Do not round intermediate calculations and round your final answer to nearest whole number.) Indifferent point packs 2-b. What does the indifference point indicate? (Do not round intermediate calculations and round your final answers to nearest whole number.) It will cost more to if the quantity exceeds packs Mc Graw Prev 1 of 5 Next > HillE V ezto.mheducation.com + 88 M Inbox (8) - silvia.domnic@gmail.com - G... Mail - Silvia Domnic - Outlook Student - cambriancollege.ca M McGraw Hill M Question 1 - Comprehensive Assignment... Comprehensive Assignment #2 i Saved Help Save & Exit Submit 2-b. What does the indifference point indicate? (Do not round intermediate calculations and round your final answers to nearest whole number.) It will cost more to if the quantity exceeds packs It will cost more to if the quantity is below packs 14 points Print 3. Select the quantitative and/or qualitative factors that GI should consider before making the final decision. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) 2 Possibility of interruptions in supply. 2 Current price and changes in price. 2 Alternative use for facilities freed up 2 Ability to maintain quality of tennis balls. 2 Any labour or production issues that may happen. 2 Chanan in manan samant struction Mc Graw Prev 1 of 5 Next > Hillezto.mheducation.com + 88 M Inbox (8) - silvia.domnic@gmail.com - G... Mail - Silvia Domnic - Outlook Student - cambriancollege.ca M McGraw Hill M Question 1 - Comprehensive Assignment... Comprehensive Assignment #2 i Saved Help Save & Exit Submit MUVILL It will cost more to if the quantity is below packs 14 points Print 3. Select the quantitative and/or qualitative factors that GI should consider before making the final decision. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) ? Possibility of interruptions in supply. 2 Current price and changes in price. 2 Alternative use for facilities freed up 2 Ability to maintain quality of tennis balls. ? Any labour or production issues that may happen. 2 Change in management structure. 2 Climatic conditions in area where plant is situated. Mc Graw Prev 1 of 5 Next > Hill