Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help!! The Ayayai Company manufactures 1,355 units of a part that could be purchased from an outside supplier for $13 each. Ayayai's costs to

Please help!!

image text in transcribed

The Ayayai Company manufactures 1,355 units of a part that could be purchased from an outside supplier for $13 each. Ayayai's costs to manufacture each part are as follows: Direct materials Direct labor Variable manufacturing $3 overhead Fixed manufacturing overhead Total $18 All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no alternative uses. (a) Calculate relevant cost to make. Relevent cost to make $ per unit (b) Should Ayayai continue to manufacture the part? LINK TO TEXT LINK TO VIDEO (c) Calculate net cost to buy if Ayayai leases the manufacturing facilities to another company for $6,055 per year Net cost to buy $ (d) Would your answer change if Ayayai could lease the manufacturing facilities to another company for $6,055 per year

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_2

Step: 3

blur-text-image_3

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

Managerial Accounting

Authors: Ray Garrison

12th Edition

B002ODFC0E

More Books

Students also viewed these Accounting questions

Question

1. Give an example of hierarchical planning in an organization.

Answered: 1 week ago