Orbital Communications, Inc. manufactures communications satellites used in TV signal transmission. The firm currently purchases one component for its satellites from a European firm. An Orbital Communications engineering team has found a way to use the company's own component, part number A200, instead of the European component. However, the Orbital Communications component must be modified at a cost of $790 per part. The European component costs $10,500 per part Orbital Communications' part number A200 costs $6,300 before it is modified. Orbital Communications currently uses 14 of the European components per year Required: Calculate the annual dfferential cost between Orbital Communications two production alternatives. Required information The following information applies to the questions displayed below] The controller for Tender Bird Poultry, Inc estimates that the company's fixed overhead is $100,000 per year. She also has determined that the variable overhead is approximately $010 per chicken raised and sold. Since the firm has a single product, overhead is applied on the basis of output units, chickens raised and sold. Required 1. Calculate the predetermined overhead rate under each of the following output predictions: (Round your answers to 2 decimal places.) Orbital Communications, Inc. manufactures communications satellites used in TV signal transmission. The firm currently purchases one component for its satellites from a European firm. An Orbital Communications engineering team has found a way to use the company's own component, part number A200, instead of the European component. However, the Orbital Communications component must be modified at a cost of $790 per part. The European component costs $10,500 per part Orbital Communications' part number A200 costs $6,300 before it is modified. Orbital Communications currently uses 14 of the European components per year Required: Calculate the annual dfferential cost between Orbital Communications two production alternatives. Required information The following information applies to the questions displayed below] The controller for Tender Bird Poultry, Inc estimates that the company's fixed overhead is $100,000 per year. She also has determined that the variable overhead is approximately $010 per chicken raised and sold. Since the firm has a single product, overhead is applied on the basis of output units, chickens raised and sold. Required 1. Calculate the predetermined overhead rate under each of the following output predictions: (Round your answers to 2 decimal places.)
