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please show calculation. Wantage Company makes decorative wedding cakes. The company is considering buying the cakes rather than baking them, which will allow it to
please show calculation.
Wantage Company makes decorative wedding cakes. The company is considering buying the cakes rather than baking them, which will allow it to concentrate on decorating. The company averages 100 wedding cakes per year and incurs the following costs from baking wedding cakes: (Click the icon to view the costs.) Fixed costs are primarily the depreciation on kitchen equipment such as ovens and mixers. Wantage expects to retain the equipment. Wantage can buy the cakes for $21. 11. Should Wantage make the cakes or buy them? Why? 12. If Wantage decides to buy the cakes, what are some qualitative factors that Wantage should also consider? 11. Should Wantage make the cakes or buy them? Why? (For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the cakes in-house.) Difference Outsource cakes (make-outsource) Cake costs Make cakes Data Table Variable costs: Direct materials $ 600 Direct materials Direct labor Variable manufacturing overhead 975 Direct labor Variable manufacturing overhead Purchase cost 225 1,250 Total differential cost of cakes Fixed manufacturing overhead Total manufacturing cost $ 3,050 - 100 Number of cakes Enter any number in the edit fields and then click Check Answer. $ 31 Cost per cakeStep by Step Solution
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