Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i Data Table SI ad. Diff -hoy le the corn pgs. (Only g exceed Direct materials $ 17,510 Direct labor Bing Variable overhead 2,900 2,090

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
i Data Table SI ad. Diff -hoy le the corn pgs. (Only g exceed Direct materials $ 17,510 Direct labor Bing Variable overhead 2,900 2,090 7,000 Fixed overhead $ Total manufacturing costs for 2,000 bindings 29,500 id Print Done m Herheng amants Requirements X - td 09 e 1. 'Winter Sports' accountants predict that purchasing the bindings from Hemingway will enable the company to avoid $2,300 of fixed overhead. Prepare an analysis to show whether Winter Sports should make or buy the bindings. 2. The facilities freed by purchasing bindings from Hemingway can be used to manufacture another product that will contribute $3,300 to profit. Total fixed costs will be the same as if Winter Sports had produced the bindings. Show which alternative makes the best use of Winter Sports' facilities: (a) make bindings. (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. 50 ble sty Print Done se stion Help Winter Sports manufactures snowboards. Its cost of making 2,000 bindings is as follows: (Click the icon to view the costs.) Suppose Hemingway will sell bindings to Winter Sports for $13 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 $0.60 per binding. Read the requirements Requirement 1. Winter Sports' accountants predict that purchasing the bindings from Hemingway will enable the company to avoid $2,300 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 Outsource Difference Binding costs Bindings Bindings (Make-Outsourch) Variable costs: Direct materials 17,510 Direct labor 2,900 Variable overhead 2,090 Fixed costs 2,300 Purchase price from Hemingway Transportation Logo Enter any number in the edit fields and then continue to the next question. Winter Sports manufactures snowboards. Its cost of making 2,000 bindings is as follows: (Click the icon to view the costs.) Suppose Hemingway will sell bindings to Winter Sports for $13 each. Winter Sports would pay $3 per unit to transport the binding its manufacturing plant, where it would add its own logo at a cost of $0.60 per binding. Read the requirements Logo Total differential cost of 2,000 bindings 24,800 Should Winter Sports make or buy the bindings? Decision Make the bindings Requirement 2. The facilities freed by purchasing bindings from Hemingway can be used to manufacture another product that will contribute $3,300 to profit. Totalfixed costs will be the same as if Winter Sports had produced the bindings. Show which alternative makes the best use of Winter Sports' facilities. (Only enter the net relevant costs. Enter all costs as positive values. Use a minus sig or parentheses for decreases to net costs) Outsourco Bindings Facilities Make New Binding costs Bindings Product Variable Costs Direct materials Make Idle Enter any number in the edit fields and then continue to the next question Question Help Winter Sports manufactures snowboards. Its cost of making 2,000 bindings is as follows: (Click the icon to view the costs.) Suppose Hemingway will sell bindings to Winter Sports for $13 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 $0.60 per binding. Read the requirements Requirement 2. The facilities freed by purchasing bindings from Hemingway can be used to manufacture another product that will contribute $3,300 to profit. Total fixed costs will be the same as if Winter Sports had produced the bindings. Show which alternative makes the best use of Winter Sports' facilities. (Only enter the net relevant costs. Enter all costs as positive values. Use a minus sign or parentheses for decreases to net costs.) Outsource Bindings Make Facilities Binding costs Bindings Idle Product Variable Costs Make Now ing . avo Direct materials Direct labor Variable overhead Fixed costs Purchase price from Hemingway Transportation forou Enter any number in the edit fields and then continue to the next question, Winter Sports manufactures snowboards. Its cost of making 2,000 bindings is as follows: Click the icon to view the costs.) Suppose Hemingway will sell bindings to Winter Sports for $13 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 $0.60 per binding. Read the requirements Variable Costs: Direct materials Uy w TUT PIUUULE Direct labor Variable overhead Fixed costs Purchase price from Hemingway. Transportation Logo Expected Buy the binding and leave the facilities idle, Expected Buy the binding and use the facilities to make the other product Which alte Make the bindings Hings avoid of outs Decision Enter any number in the edit fields and then continue to the next

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

Cost-Benefit Analysis

Authors: Euston Quah, E.J. Mishan

5th Edition

0415350379, 9780415350372

More Books

Students also viewed these Accounting questions

Question

Explain the concept of sustainable income.

Answered: 1 week ago

Question

What are their resources?

Answered: 1 week ago

Question

What impediments deal with customers?

Answered: 1 week ago