Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need the formulas for these. Thank you Prepare a make or buy analysis. X Prepare a make or buy analysis - Excel FORMULAS DATA

I need the formulas for these. Thank you

image text in transcribedimage text in transcribed

Prepare a make or buy analysis. X Prepare a make or buy analysis - Excel FORMULAS DATA REVIEW - Sign In FILE HOME INSERT PAGE LAYOUT VIEW Paste B I U - - >-A- Alignment Number Cells Editing Conditional Format as Cell Formatting Table Styles Styles Clipboard E30 A B C D E F G H 1 Alanco, Inc. manufactures a variety of products and is currently maunfacturing all of its own component parts. 2 In outside supplier has offered to sell one of those components to Alanco. To evaluate this offer, the following 3 nformation has been gathered relating to the cost of producing the component internally: 7 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable* Fixed manufacturing overhead, common but allocated Total cost 4.00 6.00 2.00 5.00 8.00 25.00 12 Supplier price 21.00 14 Units used per year 12,000 16 Fixed manufacturing overhead, traceable is composed of two items: Depreciation of equipment (no resale value) Supervisor salary 30% 70% Formatting Styles Table Styles Clipboard Font E30 17 A B C Depreciation of equipment (no resale value) Supervisor salary 18 30% 70% 20 1. Assuming the company has no alternative use for the facilities now being used to produce the component, complete the following analysis to determine if the outside supplier's offer should be accepted. Per Unit Differential Cost Make Buy 12,000 units Make Buy $ 21.00 Cost of purchasing 27 Direct materials 28 Direct labor 29 Variable manufacturing overhead 30 Fixed manufacturing overhead, traceable 31 Fixed manufacturing overhead, common 32 Total costs 4.00 6.00 2.00 34 Based on this analysis, write an if statement to determine if Alanco should make or buy the component. Alanco should the component ... Sheet1 ... + O -- + 100% READY Attempt(s) 1/3 Hint

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

IT Security Risk Control Management An Audit Preparation Plan

Authors: Raymond Pompon

1st Edition

1484221397, 978-1484221396

More Books

Students also viewed these Accounting questions