Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 8-8 (Part Level Submission) The Bramble Company manufactures 1,351 units of a part that could be purchased from an outside supplier for $14 each.

image text in transcribedimage text in transcribed

Exercise 8-8 (Part Level Submission) The Bramble Company manufactures 1,351 units of a part that could be purchased from an outside supplier for $14 each. Bramble costs follows: manufacture each part areas Direct materials $3 Direct labor 4 Variable manufacturing overhead 4 Fixed manufacturing overhead $20 Total All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no alternative uses (a-b) Your answer is correct. (a) Calculate relevant cost to make. Relevent cost to make $ per unit (b) Should Bramble continue to manufacture the part? Yes (c-d (c) Calculate net cost to buy if Bramble leases the manufacturing facilities to another company for $6,263 per year. Net cost to buy $ (d) Would your answer change if Bramble could lease the manufacturing facilities to another company for $6,263 per year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

More Books

Students also viewed these Accounting questions

Question

7. Understand the challenges of multilingualism.

Answered: 1 week ago