Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need help asap, and pls follow all the instructions and PLEASE FOLLOW THE FORMAT THATS GIVEN. PLS DO NOT MAKE ANY MISTAKES, DOUBLE CHECK YOUR
Need help asap, and pls follow all the instructions and PLEASE FOLLOW THE FORMAT THAT"S GIVEN. PLS DO NOT MAKE ANY MISTAKES, DOUBLE CHECK YOUR ANSWERS AND PUT YOUR WORKINGS. Just to let you know if you make any mistakes or your answer is wrong imma thumbs down, pls attempt this if you know how to do it
Problem 7.37A a Interdesign uses 1,360 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufacture the component are as follows: $ 70 Direct materials Direct labour Overhead 45 126 Total $241 Overhead costs include variable material handling costs of $8, which are applied to products on the basis of direct material costs. The remainder of the overhead costs are applied on the basis of direct labour dollars and consist of 50% variable costs and 50% fixed costs. A vendor has offered to supply the IMC2 component at a price of $210 per unit. (a) Should Interdesign purchase the component from the outside vendor if Interdesign's capacity remains idle? (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Net Income Increase Number of units: 1,360 Make Buy (Decrease) Direct material Direct labour Material handling Variable OH Fixed OH Purchase price V Total cost Interdesign should not purchase the component from the outside vendor
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started