Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please complete requirement 2 Mountain Rides manufactures snowboards Its cost of making 1,850 bindngs is as follows (Click the ican to view the costs) Suppose

Please complete requirement 2

image text in transcribed

Mountain Rides manufactures snowboards Its cost of making 1,850 bindngs is as follows (Click the ican to view the costs) Suppose an outside suppier will sell hindings to Mountain Rices far $14 earh Mauntain Rides will pay $ CO per urit to trarsport the bindings to is marufacturing plant, where it will add its awn logo at a cnst af $ 40 per hinding Read the rquiramant5 Requirement 1. Mountain Rdes' accountante predict that purchasing the bindings from the outside supplier will enable the ccmpany to avcid $2,200 of fxed overhead. Prepare an analysis to shaw whether Mountain Rides shoula make or buy the bindings. (Enter a for any zero balances Round any per unit amounts to the nearest cent and your tinal answers to the nearest whole dolar. Use a minus sign or parentheses in the Ditterence column when the cost to make exceeds the cost to buy.) Incremental Analysis Make Buy (Outsourco) Bindings Bindings 22,685 $ 7,100 29,785 30,340 $ .655 Varable Costs Plus Fored Costs Total cost of 1,850 bindings Decision: Make the bindings. Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture ancther product that will contribute $3 500 to profit. Total fxed coets will be the same as if Mountain Rides had produced the bindngs. Show which altemative makes the best 4,000 use of Mountain Rdes's taclites (a) make bindings, (p) buy bindings and leave taciibes idle, or (c buy bindings and make ancther product. (Enter a" tor any zero balances. Round any per unit amounts to the nearest cent and your tinal answers to the nearest whole dellar.) Buy (Outsource) Bindings (a) Make Binding Incremental Analysis (b) Leave c) Make Dat Table Facilities IdleAnother Product Vanable Costs Plus: Foed Costs Total cost of 1,850 bindings Less Profit from another product Nct cost Direct matenals... Direct labor ariable manufacturing owerhead Fixed manufachuring avrhead Total manufactring cnsts Cost per prair ($29,735/1850) 18,500 2,900 1,285 7,100 S29,785 S 18.10 Enter any numiber in the edit fiekis and then click 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

More Books

Students also viewed these Accounting questions

Question

a. When did your ancestors come to the United States?

Answered: 1 week ago

Question

d. What language(s) did they speak?

Answered: 1 week ago

Question

e. What difficulties did they encounter?

Answered: 1 week ago