Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Modern Electricals manufactures electrical appliances One of their product line is electric kettles. They are planning to buy the electical cords for the kettles from

image text in transcribed
Modern Electricals manufactures electrical appliances One of their product line is electric kettles. They are planning to buy the electical cords for the kettles from a company called Cordking. The cord can be purchased at $2.45 per unit. The cost of manufacturing 125 521 colds is Direct Materials. S 125,012. Direct Labor $95,459, Variable overheads: 25,59% of Direct Labor, Fixed Overheads includes machinery maintenance supervisor's satary and depreciation of machinery and total to $80,000 If Modern Electricais decide to buy the cords they can also save $25,000 on the supervisor's salary in the fixed costs but then there will be extra shipping cost of $35,669 The total cost as per make decision is s and total cost as per buy decision is $ Round up to 2 decimal places The company should go with decision

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_2

Step: 3

blur-text-image_3

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

Cost Accounting Fundamentals Essential Concepts And Examples

Authors: Steven M. Bragg

6th Edition

1642210234, 9781642210231

More Books

Students also viewed these Accounting questions

Question

Fill out the following table for substance ammonia

Answered: 1 week ago