Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help with requirement 1&2 appreciated. will thumbs up 25-25A (similar to) Question Hou Cool Boards and wards is cost of making 1.900 bindings as fotos

help with requirement 1&2 appreciated. will thumbs up image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
25-25A (similar to) Question Hou Cool Boards and wards is cost of making 1.900 bindings as fotos Click the icon to view the cost Suppone Witherspoon will tinding to Cool Boards for $13 Cool Blowdi wody 3 per unit to report the bindings to manufacturing plant when it would add its own logo at a cost of SO 40 per Dinding Rende Requirement 1. Cool Board accounts redict the purchasing the bindings from Witherspoon will enable the company to avod 100 de pan wys to show with Cow Board who make or buy wideo w certo Forte Differences only when the cost of our code the cost of making the dishone) Maki Outsource lining costs Binding (MakeOutsource Cheet materials Dutch Variable TryCheck 3. und Cla Check 3 of 3 (2 complete) is as follows: Boards would pay $3 per unit to transport the bindings to its manufacturing plant, Data Table and min Out Bir Direct materials Direct labor Variable overhead 17,500 2,900 2,120 6.900 Fixed overhead Total manufacturing costs for 1,900 bindings 29,420 Print Done Clear All 3 of 3 (2 complete) bindings is as follows: ch. Cool Boards would pay $3 per unit to transport the bindings to its manufacturing plant, where i i Requirements 1. Cool Boards' accountants predict that purchasing the bindings from Witherspoon will enable the company to avoid $2,100 of fixed overhead. Prepare an analysis to show whether Cool Boards should make or buy the bindings. 2. The facilities freed by purchasing bindings from Witherspoon can be used to manufacture another product that will contribute $3,300 to profit. Total fixed costs will be the same as if Cool Boards had produced the bindings. Show which alternative makes the best use of Cool Boards' facilities: (a) make bindings. (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. Print Done

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

Justified The Story Of Americas Audit

Authors: Dr. Kelli Ward

1st Edition

195725503X, 978-1957255033

More Books

Students also viewed these Accounting questions