Is there available tutor who can give me a solution and answer for this? its my reviewer for my exam but i dont really know how to solve it. Some one help me please. thank you so much.
Use the following to answer questions 22-23: Ahringer Company makes 50,000 units per year of a part it uses in the products itmanufactures. The unit product cost of this part is computed as follows: Direct materials ......................................... P19.10 Direct labor ................................................ 21.70 Variable manufacturing overhead ............. 2.10 Fixed manufacturing overhead .................. 14.20 Unit product cost ....................................... P57.10 An outside supplier has offered to sell the company all of these parts it needs for P50.10 a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be P135,000 per year. If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However, P930 of the xed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. This xed manufacturing overhead cost would be applied to the company's remaining products. 22, How much of the unit product cost of P57.10 is relevant in the decision of whether to make or buy the part? a. P57.10 b. P21 .70 c. P47.80 d. P4290 23, What is the net total dollar advantage (disadvantage) of purchasing the part rather than making it? a. P350,000 b. P135,000 c.P(115,000) d. P20,000 24. Regis Company makes the plugs it uses in one of its products at a cost of P36 per unit. This cost includes P8 of xed overhead. Regis needs 30,000 of these plugs annually, and Orlan Company has offered to sell them to Regis at P33 per unit. If Regis decides to purchase the plugs, P60,000 of the annual xed overhead will be eliminated, and the company may be able to rent the facility previously used for manufacturing the plugs. What is the maximum amount the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all 50,000 units required each year? a. P57.10 b. P5050 c. P59.80 d. P2.70 Use the following to answer questions 25-27: 5 | P a g e Dockwiller Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as D53. Data concerning this product are given below: Per Unit Data Selling price .................................................... P150 Direct materials ............................................... P26 Direct labor ...................................................... P3 Variable manufacturing overhead ................... P1 Fixed manufacturing overhead ........................ P17 Variable selling expense ................................. P2 Fixed selling and administrative expense ....... P18 The above per unit data are based on annual production of 8,000 units of the component. Direct labor can be considered to be a variable cost. 25. The company has received a special, one-time-only order for 500 units of componentD53. There would be no variable selling expense on this special order and the total xed manufacturing overhead and xed selling and administrative expenses of the company would not be affected by the order. Assuming that Dockwiller has excess capacity and can ll the order without cutting back on the production of any product, what is the minimum price per unit on the special order below which the company should not go? a. P67 b. P30 c. P150 d. P47 26. The company has received a special, one-time-only order for 300 units of componentDSS. There would be no variable selling expense on this special order and the total xed manufacturing overhead and xed selling and administrative expenses of the company would not be affected by the order. However, assume that Dockwiller has no excess capacity and this special order would require 30 minutes of the constraining resource, which could be used instead to produce products with a total contribution margin of P1,800. What is the minimum price per unit on the special order below which the company should not go? a. P73 b. P36 c. P53 d. P6 27. Refer to the original data in the problem. What is the current contribution margin per unit for component D53 based on its selling price of P150 and its annual production 31,000 units? a. P83 b. P118 0. P32 d. P120 Use the following to answer questions 28-30: Elferts Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 70,000 units per month is as follows: Direct materials ..................................................... P41.40 Direct labor ............................................................ P7.10 Variable manufacturing overhead ......................... P2.40 Fixed manufacturing overhead .............................. P1830 Variable selling & administrative expense ........... P1.00 Fixed selling & administrative expense ................ P6.10 The normal selling price of the product is P8580 per unit. An order has been received from an overseas customer for 4,000 units to be delivered this month at a special discounted price. This order would have no effect on the company's normal sales and would not change the total amount of the company's xed costs. The variable selling and administrative expense would be P0.60 less per unit on this order than on normal sales. Direct labor is a variable cost in this company. 28. Suppose there is ample idle capacity to produce the units required by the overseas customer and the special discounted price on the special order is P8060 per unit. By how much would this special order increase (decrease) the company's net operating income for the month? a. P44,000 b.P(18,400) c. P 1 1 7,20 d. P17,200 6 | P a g e 29. Suppose the company is already operating at capacity when the special order is received from the overseas customer. What would be the opportunity cost of each unit delivered to the overseas customer? a, P9.50 b. P10.10 c. P520 d. P3390 30. Suppose there is not enough idle capacity to produce all of the units for the overseas customer and accepting the special order would require cutting back on production of100 units for regular customers. The minimum acceptable price per unit for the special order is closest to: a, P6920 b. P7630 c. P85.80 d. P52.15
