Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kyoto Company is considering buying Part No. 0210 from an outside supplier instead of manufacturing the part as it is now doing. The annual requirement

image text in transcribed
Kyoto Company is considering buying Part No. 0210 from an outside supplier instead of manufacturing the part as it is now doing. The annual requirement for that Part No. 0210 is 80,000 units. The cost to manufacture this part is: Per Unit Direct Materials 14.00 Direct Labor 25.00 Manufacturing Overhead: Variable 12.00 Fixed 24.00 Total Unit Cost 75.00 An offer was received from a supplier to supply Part 0210 for P55.00 per unit. Furthermore, fixed manufacturing overhead will be reduced by 25% if the offer is accepted. D Question 5 3 pts What is the total cost to purchase 80,000 units of Part 0210 for decision making? O 4,400,000 O 6,320,000 Activate Wind O 5,840,000 Go to Settings to O 6,000,000

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

Step: 3

blur-text-image

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

Horngrens Accounting The Financial Chapters

Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura

10th Edition

0133117561, 978-0133117561

More Books

Students also viewed these Accounting questions

Question

What research studies are you interested in conducting?

Answered: 1 week ago

Question

2. It is the results achieved that are important.

Answered: 1 week ago