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please make sure the numbers are right Check Recher Corporation uses part Q89 in one of its products. The company's Accounting Department reports the following
please make sure the numbers are right
Check Recher Corporation uses part Q89 in one of its products. The company's Accounting Department reports the following costs of producing the 9100 units of the part that are needed every year Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead $9.80 5.0e 9.99 $ 3.88 3.20 $ 1.70 An outside supplier has offered to make the part and sell it to the company for $30.00 each. If this offer is accepted, the supervisors salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $3,000 of these allocated general overhead costs would be avoided. In addition, the space used to produce part Q89 could be used to make more of one of the company's other products, generating an additional segment margin of $16,700 per year for that product Required: a. Prepare a report that shows the financial impact of buying part Q89 from the supplier rather than continuing to make it inside the company b. Which alternative should the company choose? Complete this question by entering your answers in the tabs below. 30f 5 rch Complete this question by entering your answers in the tabs below. Required A Required B Prepare a report that shows the financial impact of buying part Q89 from the supplier rather than continuing to make it inside the company Make Buy Direct materials Direct labor Variable overhead Supervisors salary Depreciation of special equipment Allocated general overhead Outside purchase price Opportunity cost Total cost IA Required B K Prey 3 of 5 Next ch 3 Answer is not complete. Complete this question by entering your answers in the tabs below Required A Required B Prepare a report that shows the financial impact of buying part Q89 from the the company. supplier rather than continuing to make it inside 81,900 5,500 90,090 34,580 29,120 8 29,120 15.470 12,470 Direct materials Direct labor Variable overhead Supervisors salary Depreciation of special equipment Allocated general overhead Outside purchase price Opportunity cost Total cost 273,000 313,360S 314,590 16,700 0 rch Step by Step Solution
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