Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

FILE Paste 1. Complete the make-or-buy analysis. Prepare a make-or-buy analysis - Excel ? - REVIEW VIEW HOME INSERT PAGE LAYOUT FORMULAS DATA *

image text in transcribed

FILE Paste 1. Complete the make-or-buy analysis. Prepare a make-or-buy analysis - Excel ? - REVIEW VIEW HOME INSERT PAGE LAYOUT FORMULAS DATA * Calibri 11 ' ' % BIU Font Alignment Number Conditional Format as Cell Table Styles Styles Cells Editing Formatting Clipboard F26 A B D fx E H 1 Alanco, Inc. manufactures a variety of products and is currently maunfacturing all of its own component parts. 2 An outside supplier has offered to sell one of those components to Alanco. To evaluate this offer, the following 3 information has been gathered relating to the cost of producing the component internally: 4 5 Direct materials 6 Direct labor 7 Variable manufacturing overhead 8 Fixed manufacturing overhead, direct* 9 Fixed manufacturing overhead, common but allocated 10 Total cost 11 12 Supplier price 13 14 Units used per year 15 16 *The fixed manufacturing overhead, direct 17 18 19 Depreciation of equipment (no resale value) Supervisor salary 21.00 12,000 30% 70% $ 4.00 6.00 2.00 5.00 8.00 25.00 20 1. Assuming the company has no alternative use for the facilities now being used to produce the 21 component, complete the following analysis to determine if the outside supplier's offer should be accepted. 22 23 24 25 26 Cost of purchasing 27 Direct materials 28 Direct labor 29 Variable manufacturing overhead 30 Fixed manufacturing overhead, traceable 31 Fixed manufacturing overhead, common READY Sheet1 Per Unit Differential Cost Make Buy Total for 12,000 units Make Buy Sign In I J K L 10%

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

Financial Accounting An Introduction to Concepts, Methods and Uses

Authors: Roman L. Weil, Katherine Schipper, Jennifer Francis

14th edition

978-1111823450, 1-133-36617-1 , 1111823456, 978-1-133-3661, 978-1133591023

More Books

Students also viewed these Accounting questions

Question

=+b) In which application is a larger length used?

Answered: 1 week ago