Part B choices are make CISCO or buy CISCO

Part C choices are yes or no

Ch 20: Homework with Video Assistance Question 3 of 7 -/1 View Polides Current Attempt in Progress The management of Crane Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. The part called CISCO, is a component of the company's finished product. The following information was collected from the accounting records and production data for the year ending December 31.2020 1.7.900 units of Cisco were produced in the Machining Department 2 Variable manufacturing costs applicable to the production of each CISCO unit were direct materials $5.08. direct labor 4.15 indirect labor $0.41, utilities $0.44 3. Fixed manufacturing costs applicable to the production of CISCO were: Cost Item Direct Allocated Depreciation 51.900 $910 Property taxes 540 340 Insurance 920 580 $3.360 $1.830 All variable manufacturing and direct fixed costs will be eliminated it CISCO is purchased Allocated costs will not be eliminated at Cisco is purchased Solf CISCO purchased the fired manufacturing conts allocated to Cisco will have to be absorbed by other production departments ork with Video Assistance Question 3 of 7 -/1 E All variable manufacturing and direct fixed costs will be eliminated if CISCO is purchased. Allocated costs will not be eliminated it CISCO is purchased. So if CISCO is purchased, the fixed manufacturing costs allocated to CISCO will have to be absorbed by other production departments 4. The lowest quotation for 7,900 CISCO units from a supplier is $79,899. 5.1 CISCO units are purchased, freight and inspection costs would be $0.37 per unit, and receiving costs totaling 51.270 per year would be incurred by the Machining Department (a) Prepare an incremental analysis for CISCO(Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses es (45) Make CISCO Net Income Increase (Decrease) Buy CISCO Direct material $ Direct labor Indirect labor Utilities Depreciation Dennar to search Ch 20: Homework with Video Assistance Question 3 of 7