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iPad ? 1:36 AM 7% V B a edugen.wileyplus.com WileyPLUS formula of manufacturing overhead cost - Googl... Syllabus fall 2019 - Managerial Accounting_1_AA... CALCULATOR PRINTER

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iPad ? 1:36 AM 7% V B a edugen.wileyplus.com WileyPLUS formula of manufacturing overhead cost - Googl... Syllabus fall 2019 - Managerial Accounting_1_AA... CALCULATOR PRINTER VERSION 1 BACK NEXT ASSIGNMENT RESOURCES Incremental analysis Do It! Review 7-3 2019 Wilma Company must decide whether to make or buy some of its components. The costs of producing 62,500 switches for Exercise 7-1 its generators are as follows. Brief Exercise 7-3 Brief Exercise 7-7 Direct materials $30,700 Variable overhead $45,800 Do It! Review 7-3 Direct labor $21,150 Fixed overhead $83,600 Do It! Review 7-5 Exercise 7-2 a-b (Video) Instead of making the switches at an average cost of $2.90 ($181,250 : 62,500), the company has an opportunity to buy the switches at $2.72 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed Review Score costs will be eliminated. Review Results by Study Objective Prepare an incremental analysis showing whether the company should make or buy the switches. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Make Buy Increase (Decrease) Direct materials LA Direct labor Variable manufacturing costs Fixed manufacturing costs Purchase price Total cost Wilma Company will incur $ of additional costs if it the switches

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