Question
Please help with the remaining yellow cells in this question question. PLEASE INCLUDE CELL REFERENCE not only the end result. Thank you! Alanco, Inc. manufactures
Please help with the remaining yellow cells in this question question. PLEASE INCLUDE CELL REFERENCE not only the end result. Thank you!
Alanco, Inc. manufactures a variety of products and is currently manufacturing all of its own component parts. An outside supplier has offered to sell one of those components to Alanco. The Controller has asked you to help evaluate this offer to determine if the company should make or buy the component. Use the information included in the Excel Simulation and the Excel functions described below to complete the task.
A D G I B E F H 1 Alanco, Inc. manufactures a variety of products and is currently maunfacturing all of its own component parts. 2 An outside supplier has offered to sell one of those components to Alanco. To evaluate this offer, the following 3 information has been gathered relating to the cost of producing the component internally: 4 5 Direct materials $ 4.00 6 Direct labor 6.00 7 Variable manufacturing overhead 2.00 8 Fixed manufacturing overhead, traceable* 5.00 9 Fixed manufacturing overhead, common but allocated 8.00 10 Total cost $ 25.00 11 12 Supplier price $ 21.00 13 14 Units used per year 12,000 15 16 *Fixed manufacturing overhead, traceable is composed of two items: 17 Depreciation of equipment (no resale value) 30% 18 Supervisor salary 70% 19 20 1. Assuming the company has no alternative use for the facilities now being used to produce the 21 component, complete the following analysis to determine if the outside supplier's offer should be accepted. 22 A B I D E F G H 15 16 *Fixed manufacturing overhead, traceable is composed of two items: 17 Depreciation of equipment (no resale value) 30% 18 Supervisor salary 70% 19 20 1. Assuming the company has no alternative use for the facilities now being used to produce the 21 component, complete the following analysis to determine if the outside supplier's offer should be accepted. 22 23 Per Unit Differential Cost 12,000 units 24 Make Buy Make Buy 25 | 26 Cost of purchasing 21.00 $ 252.000 27 Direct materials $ 4.00 $ 48,000 28 Direct labor 6.00 72,000 29 Variable manufacturing overhead 2.00 24,000 30 Fixed manufacturing overhead, traceable 3.50 31 Fixed manufacturing overhead, common 32 Total costs 33 34 Based on this analysis, write an if statement to determine if Alanco should make or buy the component. 35 36 Alanco should the component 37Step by Step Solution
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