Question
Oriole Toys can make 5400 toy robots with the following costs: Direct Materials $74400Direct Labour 29000Variable Overhead 24000Fixed Overhead14600 The company can purchase the 5400
Oriole Toys can make 5400 toy robots with the following costs:
Direct Materials
$74400Direct Labour
29000Variable Overhead
24000Fixed Overhead14600
The company can purchase the 5400 robots externally for $144500. The avoidable fixed costs are $14600 if the units are purchased externally. What is the cost savings if the company makes the robots?
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College Accounting Chapters 1-27
Authors: James A. Heintz, Robert W. Parry
23rd edition
1337794759, 978-1337794756
