Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

P8-52A (similar to) Question Help Mountain Sports manufactures snowboards. Its cost of making 1,900 bindings is as folows: (Click the icon to view the costs)

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
P8-52A (similar to) Question Help Mountain Sports manufactures snowboards. Its cost of making 1,900 bindings is as folows: (Click the icon to view the costs) Suppose an outside supplier will sell bindings to Mountain Sports for $13 each. Mountain Sports will pay $3.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of s0.40 per binding. Read the reguirements Requirement 1. Mountain Sports' accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,200 of fixed overhead. Prepare an analysis to show whether Mountain Sports should make or buy the bindings. (Enter a " for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy) Ineremental Analysis Make Buy (Outsource) Data Table Outsoureing Decision Bindings 27780 7050 Bindings 31160 Difference 3380 Variable Costs 4850 2200 Direct materials 17,500 Plus: Fixed Costs Direct labor. 30780 380 31960 3,000 Total cost of 1,9pabindicas Variable manufachuring ovechead 3230 Requirements 7,060 Fixed manufacturing overhead 30,780 Total manufacturing costs Cost per pair ($30,780/1,900) . 1. Mountain Sports' accountants predict that purchasing the bindings from the outside supplier wil enable the company to avoid $2.200 of fixed overhead. Prepare an analysis to show whether Mountain Sports should make or buy the bindings. 16.20 Enter any numb 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3,100 to profit. Total fixed costs will be the same as if Mountain Sports had produced the bindings. Show which alternative makes the best use of Mountain Sports's facilites: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) Print Done parts remaining Check Answar hininne and make anhar nandurt P8-52A (similar to) Question Help Mountain Sports manufactures snowboards. Its cost of making 1,900 bindings is as follows (Click the icon to view the costs) Suppose an outside supplier wil sell bindings to Mountain Sports for $13 each. Mountain Sports will pay $3.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of so.40 per binding. Read the esuirements Requirement 1. Mountain Sports' accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,200 of fixed overhead. Prepare an analysis to show whether Mountain Sports should make or buy the bindings. (Enter a for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy) Incremental Analysis Make Buy (Outsource) Bindings 27780 7050 Outsourcing Decision Bindings Difference 31160 3380 Variable Costs 4850 2200 Plus: Fixed Costs 30780 31960 380 Total cost of 1,900 bindings Enter any number in the edit fields and then click Check Answer. parts remaining Clear A Check Answer P8-52A (similar to Question Help Mountain Sports manufactures snowboards. Its cost of making 1,900 bindings is as follows (Click the icon to view the costs.) Suppose an outside supplier wil sell bindings to Mountain Sports for $13 each. Mountain Sports will pay $3.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of s0.40 per binding Read the resuirements Data Table 0 of fixed overhead. Prepare an analysis to show whether answers to the nearest whole dollar. Use a minus sign or Requirement 1. Mountain Sports' accountants predict that purchasin Mountain Sports should make or buy the bindings. (Enter a " for an parentheses in the Difference column when the cost to make exceed Direct materials 17,500 Buy ( Ineremental Analysis Make Direct labor... 3,000 Outsourcing Decision Bir Bindings 27780 7050 Variable manufacturing ovechead . 3,230 Variable Costs 7,050 Fixed manufacturing overhead Plus: Fixed Costs 30,780 Total manufacturing costs . Cost per pair ($30,780.1,900) 30780 Total cost of 1,900 bindings 16.20 Print Done Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Check Answer HW Score: 32.54 % , 4.88 of 15 pts Score: 0 of 5 pts 2 of 3 (1 complete) P8-52A (similar to) Question Help Mountain Sports manufactures snowboards. Its cost of making 1,900 bindings is as follows (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Mountain Sports for $13 each. Mountain Sports will pay $3.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of S040 per binding. Read the reauirements Requirements Requirement 1. Mountain Sports accountants predi Mountain Sports should make or buy the bindings. (E parentheses in the Difference column when the cost pad. Prepare an analysis to show whether hearest whole dollar. Use a minus sign or 1. Mountain Sports' accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,200 of fixed overhead. Prepare an analysis to show whether Mountain Sports should make or buy the bindings. 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3,100 to profit. Total fixed costs will be the same as if Mountain Sports had produced the bindings. Show which altermative makes the best use of Mountain Sports's facilities: (a) make bindings. (b) buy bindings and leave facilities ide, or (e) buy bindings and make another product. Make Incremental Analysis Binding Outsourcing Decision Variable Costs Plus: Fixed Costs Total cost of 1,900 bindings Print Done Enter any number in the edit fields and then click Check Answer. 3 parts remaining Clear Al Check Answer P8-52A (similar to) Question Help Mountain Sports manufactures snowboards. Its cost of making 1,900 bindings is as follows (Click the icon to view the costs) Suppose an outside supplier wil sell bindings to Mountain Sports for $13 each. Mountain Sports will pay $3.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of so.40 per binding. Read the esuirements Requirement 1. Mountain Sports' accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,200 of fixed overhead. Prepare an analysis to show whether Mountain Sports should make or buy the bindings. (Enter a for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy) Incremental Analysis Make Buy (Outsource) Bindings 27780 7050 Outsourcing Decision Bindings Difference 31160 3380 Variable Costs 4850 2200 Plus: Fixed Costs 30780 31960 380 Total cost of 1,900 bindings Enter any number in the edit fields and then click Check Answer. parts remaining Clear A Check Answer P8-52A (similar to Question Help Mountain Sports manufactures snowboards. Its cost of making 1,900 bindings is as follows (Click the icon to view the costs.) Suppose an outside supplier wil sell bindings to Mountain Sports for $13 each. Mountain Sports will pay $3.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of s0.40 per binding Read the resuirements Data Table 0 of fixed overhead. Prepare an analysis to show whether answers to the nearest whole dollar. Use a minus sign or Requirement 1. Mountain Sports' accountants predict that purchasin Mountain Sports should make or buy the bindings. (Enter a " for an parentheses in the Difference column when the cost to make exceed Direct materials 17,500 Buy ( Ineremental Analysis Make Direct labor... 3,000 Outsourcing Decision Bir Bindings 27780 7050 Variable manufacturing ovechead . 3,230 Variable Costs 7,050 Fixed manufacturing overhead Plus: Fixed Costs 30,780 Total manufacturing costs . Cost per pair ($30,780.1,900) 30780 Total cost of 1,900 bindings 16.20 Print Done Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Check Answer HW Score: 32.54 % , 4.88 of 15 pts Score: 0 of 5 pts 2 of 3 (1 complete) P8-52A (similar to) Question Help Mountain Sports manufactures snowboards. Its cost of making 1,900 bindings is as follows (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Mountain Sports for $13 each. Mountain Sports will pay $3.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of S040 per binding. Read the reauirements Requirements Requirement 1. Mountain Sports accountants predi Mountain Sports should make or buy the bindings. (E parentheses in the Difference column when the cost pad. Prepare an analysis to show whether hearest whole dollar. Use a minus sign or 1. Mountain Sports' accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,200 of fixed overhead. Prepare an analysis to show whether Mountain Sports should make or buy the bindings. 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3,100 to profit. Total fixed costs will be the same as if Mountain Sports had produced the bindings. Show which altermative makes the best use of Mountain Sports's facilities: (a) make bindings. (b) buy bindings and leave facilities ide, or (e) buy bindings and make another product. Make Incremental Analysis Binding Outsourcing Decision Variable Costs Plus: Fixed Costs Total cost of 1,900 bindings Print Done Enter any number in the edit fields and then click Check Answer. 3 parts remaining Clear Al Check

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

Step: 3

blur-text-image

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

Costing

Authors: Lucey

7th Edition

1844809439, 978-1844809431

More Books

Students also viewed these Accounting questions

Question

what is the appropriate binary mask value

Answered: 1 week ago

Question

What is the cycle of intimate partner abuse?

Answered: 1 week ago