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Manufacturing cost data for Banta Company are presented below. Option B $85,50 Direct materials used Direct labor Manufacturing overhead Total manufacturing costs Work in process
Manufacturing cost data for Banta Company are presented below. Option B $85,50 Direct materials used Direct labor Manufacturing overhead Total manufacturing costs Work in process 1/1/20 Total cost of work in process Work in process 12/31/20 Cost of goods manufactured Option A $82,075 47.000 46,500 175,575 21,500 197,075 34,231 $162,844 46,000 45,500 177.000 21,500 198,500 35.231 $163,269 Option C $78.050 52,575 47.750 178,375 21.500 199.875 35.751 $164,124 (b) Banta Company must choose between options A, B and C. Evaluate the three options and determine which one is in the best interest of Banta Company. Write a brief paragraph to explain your reasoning. The options differ as follows: . Option A uses moderately priced materials from a supplier that usually has the quantities needed by Banta. Activate Option Buses high quality materials that are readily available from a local supplier. Labor and manufacturing costs can be reduced slightly since fewer items fail quality tests during production Go to Setting Ontion uses slight (b) Banta Company must choose between options A B and C. Evaluate the three options and determine which one is in the best interest of Banta Company. Write a brief paragraph to explain your reasoning. The options differ as follows: . . Option A uses moderately priced materials from a supplier that usually has the quantities needed by Banta. Option Buses high quality materials that are readily available from a local supplier. Labor and manufacturing costs can be reduced slightly since fewer items fail quality tests during production Option Cuses slight significantly less expensive materials from a local supplier. These lower quality materials result in higher labor and manufacturing overhead costs
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