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i need to fill in the blank boxes, all the information is provided in the pictures below. Question 2 of 5 --/5 The management of
i need to fill in the blank boxes, all the information is provided in the pictures below.
Question 2 of 5 --/5 The management of Cullumber Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. The part called CISCO, is a component of the company's finished product The following information was collected from the accounting records and production data for the year ending December 31, 2022 1.8,000 units of CISCO were produced in the Machining Department 2. Variable manufacturing costs applicable to the production of each CISCO unit were direct materials $4.61, direct labor $448. indirect labor $0.48. utilities $0.41 3. Fixed manufacturing costs applicable to the production of Ciscdi were: Cost Item Direct Allocated Depreciation $2.000 $920 Property taxes 480 1410 Insurance 890 600 $3,370 $1.930 524 PM Question 2 of 5 -75 I!! Depreciation $2,000 $920 Property taxes 480 410 Insurance 890 600 $3,370 $1.930 All variable manufacturing and direct fixed costs will be eliminated if CISCO is purchased. Allocated costs will not be eliminated if CISCO is purchased. So if CISCO is purchased the fixed manufacturing costs allocated to CISCO will have to be absorbed by other production departments 4. The lowest quotation for 8,000 CISCO units from a supplier is $80,520, 5. If CISCO units are purchased, freight and inspection costs would be $0.35 per unit and receiving costs totaling 51.280 per year would be incurred by the Machining Department (a) Prepare an incremental analysis for CISCO. (Enter negative amounts using either a negative sign preceding the number eg. 45 or parentheses es (451) Question 2 of 5 Utilities Depreciation Property taxes Insurance Purchase price Freight and inspection Receiving costs $ $ $ Total annual cost 526 PM 4/19/2022 ACC-240 TOPIC 07 ASSIGNMENT Question 2 of 5 > -75 : :00 (b) Based on your analysis, what decision should management make? The company should buy CISCO make CISCO (c) Would the decision be different if Cullumber Company has the opportunity to produce $3,000 of net income with the facilities currently being used to manufacture CISCO e Textbook and Media Assistance Used Textbook 48F 525 PM 4/19/2022 Step by Step Solution
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