Question
Hamilton Co. can produce 100 units of a necessary component part with the following costs: Direct materials $67794 Direct labour 12717 Variable overhead 88857 Fixed
| Hamilton Co. can produce 100 units of a necessary component part with the following costs: | |||
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| Direct materials | $67794 |
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| Direct labour | 12717 |
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| Variable overhead | 88857 |
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| Fixed overhead | 25555 |
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| If Hamilton purchases the component externally, $1821 of the fixed costs can be avoided. Below what external price for the 100 units would Hamilton choose to buy instead of make?
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Bookkeeping And Accounting
Authors: Greg Shields
1st Edition
1983673536, 978-1983673535
