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hi can I get the table filled out please so I can understand where they are getting the numbers from. Winter Sports manufactures snowboards. Its
hi can I get the table filled out please so I can understand where they are getting the numbers from.
Winter Sports manufactures snowboards. Its cost of making 1,800 bindings is as follows: E(Click the icon to view the costs.) Suppose Lancaster will sell bindings to Winter Sports for $16 each. Winter Sports would pay $3 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.40 per binding. Read the requirements. Requirement 1. Winter Sports' accountants predict that purchasing the bindings from Lancaster will enable the company to avoid $2,200 of fixed overhead. Prepare an analysis to show whether Winter Sports should make or buy the bindings. (Only enter the net relevant costs. For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the bindings in-house.) Make Bindings Outsource Bindings Difference (Make-Outsource) Binding costs Variable costs: i Data Table Direct materials Direct labor Direct materials $ 17,550 Direct labor 3,100 Variable overhead Fixed costs Purchase price from Lancaster Transportation Variable overhead 2,090 6,600 Fixed overhead $ 29,340 Logo Total manufacturing costs for 1,800 bindings Total differential cost of 1,800 bindings Print DoneStep by Step Solution
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