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Golfers, Inc. ( GI ) manufactures golf - related equipment including golf balls. This year s expected production of golf balls is 9 0 ,
Golfers, Inc. GI manufactures golfrelated equipment including golf balls. This years expected production of golf balls is packs each consisting of four golf balls Cost data are as follows: Per Pack Packs Product costs directly traceable to balls: Direct materials $ $ Direct labour Variable manufacturing overhead Fixed manufacturing overhead General allocated overhead $ The full cost of one pack of golf balls is $ GI has received an offer from an outside supplier to supply any desired quantity of balls at a price of $ per pack of four golf balls. The cost accounting department has provided the following information: The direct fixed manufacturing overhead is the cost of leasing the machine that stamps out the balls. The machine can produce a maximum of balls per year. If the balls are bought, the machine will no longer be needed. No other costs will be affected. Required: Prepare an analysis showing whether GI would be better off making or buying the balls at a projected volume of packs golf ballsRound "Per Unit" answers to decimal places.
Golfers, Inc. GI manufactures golfrelated equipment including golf balls. This years expected production of golf balls is packs each consisting of four golf balls Cost data are as follows:
Per Pack Packs
Product costs directly traceable to balls:
Direct materials $ $
Direct labour
Variable manufacturing overhead
Fixed manufacturing overhead
General allocated overhead
$
The full cost of one pack of golf balls is $ GI has received an offer from an outside supplier to supply any desired quantity of balls at a price of $ per pack of four golf balls. The cost accounting department has provided the following information:
The direct fixed manufacturing overhead is the cost of leasing the machine that stamps out the balls. The machine can produce a maximum of balls per year. If the balls are bought, the machine will no longer be needed.
No other costs will be affected.
Required:
Prepare an analysis showing whether GI would be better off making or buying the balls at a projected volume of packs golf ballsRound "Per Unit" answers to decimal places.
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