Need requirements 1 and 2. PLEASE.
Costs Direct materials Direct labour Variable manufacturing overhead .... Fixed manufacturing overhead 17,280 3,200 2,050 6,900 29,430 12.26 $ Total manufacturing costs Cost per pair ($29,430 / 2,400) $ Mountaineer Snowboard Mfg.Inc. manufactures snowboards. Its cost of making 2,400 bindings is as follows: (Click the icon to view the costs.) Suppose Otten will sell bindings to Mountaineer for $10 each. Mountaineer will pay $1.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.60 per binding. Requirements Outsourcing Analysis Buy Cost to Make Minus Requirements Make Binding Bindings Cost to Buy Total cost: Direct materials Direct labour Variable overhead Fixed overhead Purchase price from Otten Transportation 1. Mountaineer's accountants predict that purchasing the bindings from Otten will enable the company to avoid $3,800 of fixed overhead. Prepare an analysis to show whether Mountaineer should make or buy the bindings. 2. The facilities freed by purchasing bindings from Otten can be used to manufacture another product that will contribute $3,200 to profit. Total fixed costs will be the same as if Mountaineer had produced the bindings. Show which alternative makes the best use of Mountaineer's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. Print Done] Logo Total cost of 2,400 bindings Decision: Make Bindings Buy Bindings Leave Make Another Facilities Idle Product Direct materials Direct labour Variable overhead Fixed overhead Purchase price from Otten Transportation Logo Expected profit from other product Expected net cost Decision: Requirement 1. Mountaineer's accountants predict that purchasing the bindings from Otten will enable the company to avoid $3,800 of fixed overhead. Prepare an analysis to show whether Mountaineer should make or buy the bindings. (If a box is not used in the table, leave the box empty; do not enter a zero. Use a minus sign or parentheses for subtracting numbers that are typically shown enclosed in parentheses in an outsourcing analysis. All boxes in the Cost to Make Minus the Cost to Buy column should have a value entered.) Requirement 2. The facilities freed by purchasing bindings from Otten can be used to manufacture another product that will contribute $3,200 to profit. Total fixed costs will be the same as if Mountaineer had produced the bindings. Show which alternative makes the best use of Mountaineer's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. (If a box is not used in the table, leave the box empty; do not enter a zero. Use a minus sign or parentheses for subtracting numbers that are typically shown enclosed in parentheses in an outsourcing analysis.)
