Homework: 6-1 MyAccountingLab Homework: Chapter 11 Save HW Score: 6.91%, 3.11 of 45 E Score: 0 of 5 pts 1 2 of 9 (1 complete) v E11-25 (similar to) Question Help The Serendipity Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards (CMCB), an important part of the cellular modem. It reports the following cost information about the costs of making CMCBS in 2017 and the expected costs in 2018. (Click the icon to view the make versus buy information.) Read the reauirements E (Click the icon to view the costs.) Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBS in 2018. Total Manufacturing Manufacturing Costs of CMCB Cost per Unit O Requirements Direct materials Direct manufacturing labor Variable batch manufacturing costs 1. Calculate the total expected manufacturing cost per unit of making CMCBS in 2018. Suppose the capacity currently used to make CMCBS will become idle if Serendipity purchases CMCBS from Maverick. On the basis of financial considerations alone, should Serendipity make CMCBS or buy them from Maverick? Show your caculations. Now suppose that if Serendipity purchases CMCBS from Maverick, its best alternative use of the capacity currently used for CMCBS is to make and sell special circuil boards (CB3S) to the Excile Corporation. Serendipity estimates the following incremental revenues and costs from CB3S: 2. Fixed manufacturing costs Avoidable fixed manufacturing costs 3. Unavoidable fixed manufacturing costs Tolal expected incremental future revenues Total manufacturing costs S1,900,000 Tolal expected incremental fulure costs S2,000,000 On the basis of financial consideralions alone, should Serendipity make CMCBS or buy them from Maverick? Show your calculations. Print Done nfor makine CMCDein 2047and the Data Table per Expected Costs Current Costs ng in 2018 in 2017 Variable manufacturing costs 175 Direct material cost per CMCB 2$ 188 $ Direct manufacturing labor cost per CMCB 39 58 Variable manufacturing cost per batch for setups, materials 1,200 1,700 handling, and quality control Fixed manufacturing cost Fixed manufacturing overhead costs that can be avoided if CMCBS 170,000 315,000 are not made Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if 770,000 1,190,000 CMCBS are not made Done Print er. Homework: 6-1 MyAccountingLab Homework: Chapter 11 Save HW Score: 6.91%, 3.11 of 45 E Score: 0 of 5 pts 1 2 of 9 (1 complete) v E11-25 (similar to) Question Help The Serendipity Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards (CMCB), an important part of the cellular modem. It reports the following cost information about the costs of making CMCBS in 2017 and the expected costs in 2018. (Click the icon to view the make versus buy information.) Read the reauirements E (Click the icon to view the costs.) Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBS in 2018. Total Manufacturing Manufacturing Costs of CMCB Cost per Unit O Requirements Direct materials Direct manufacturing labor Variable batch manufacturing costs 1. Calculate the total expected manufacturing cost per unit of making CMCBS in 2018. Suppose the capacity currently used to make CMCBS will become idle if Serendipity purchases CMCBS from Maverick. On the basis of financial considerations alone, should Serendipity make CMCBS or buy them from Maverick? Show your caculations. Now suppose that if Serendipity purchases CMCBS from Maverick, its best alternative use of the capacity currently used for CMCBS is to make and sell special circuil boards (CB3S) to the Excile Corporation. Serendipity estimates the following incremental revenues and costs from CB3S: 2. Fixed manufacturing costs Avoidable fixed manufacturing costs 3. Unavoidable fixed manufacturing costs Tolal expected incremental future revenues Total manufacturing costs S1,900,000 Tolal expected incremental fulure costs S2,000,000 On the basis of financial consideralions alone, should Serendipity make CMCBS or buy them from Maverick? Show your calculations. Print Done nfor makine CMCDein 2047and the Data Table per Expected Costs Current Costs ng in 2018 in 2017 Variable manufacturing costs 175 Direct material cost per CMCB 2$ 188 $ Direct manufacturing labor cost per CMCB 39 58 Variable manufacturing cost per batch for setups, materials 1,200 1,700 handling, and quality control Fixed manufacturing cost Fixed manufacturing overhead costs that can be avoided if CMCBS 170,000 315,000 are not made Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if 770,000 1,190,000 CMCBS are not made Done Print er
