Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help on 4. please! Make-or-Buy Decision. Alternatives, Relevant Costs Each year, Giada Company produces 21,000 units of a component part used in tablet

I need help on 4. please!
image text in transcribed
image text in transcribed
Make-or-Buy Decision. Alternatives, Relevant Costs Each year, Giada Company produces 21,000 units of a component part used in tablet computers, An outside supplier has offered to supply the part for $1.23. The unit cost is $0.22 0.32 Direct materials Direct labor Variable overhead Fibed overhead Total unit cost 0.1 2.55 $3.69 Required: 1. What are the alternatives for Glada Company? Make the part in house or buy the part externally 2. Assume that none of the fixed cost is avoidable. Ust the relevant cost(s) of internal production, Direct materials, direct labor and variable overhead List the relevant costs) of external purchast. Purchase price 3. Which alternative is more cost effective and by how much? Making the part in house by $1,800 4. What I 519,400 of foed overhead la rental of equipment used only in production of the component that can be avoided if the component is purchased? Which alternative is more cost effective and by how much? Check My Work

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_2

Step: 3

blur-text-image_3

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

Financial Accounting

Authors: LibbyShort

7th Edition

78111021, 978-0078111020

More Books

Students also viewed these Accounting questions