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please solve all the requirements for this question. Boards's accountants predict that purchasing the bindings from Otter will enable the company to avoid $3,300 of
please solve all the requirements for this question.
Boards's accountants predict that purchasing the bindings from Otter will enable the company to avoid $3,300 of fixed overhead. Prepare an analysis to she le, leave the box empty; do not enter a zero. Use a minus sign or parentheses for subtracting numbers that are typically shown enclosed in parem to Buy column should have a value entered.) Cool Boards Outsoul i Requirements X N 1. Cool Boards's accountants predict that purchasing the bindings from Otter will enable the company to avoid $3,300 of fixed overhead. Prepare an analysis to show whether Cool Boards should make or buy the bindings. 2. The facilities freed by purchasing bindings from Otter can be used to manufacture another product that will contribute $3,200 to profit. Total fixed costs will be the same as if Cool Boards had produced the bindings. Show which alternative makes the best use of Cool Boards's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. om Otter Print Done bindings Cool Boards Snowboard Mfg. Inc. manufactures snowboards. Its cost of making 1,500 bindings is as follows: E: (Click the icon to view the costs.) Suppose Otter will sell bindings to Cool Boards for $11 each. Cool Boards will pay $2.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.60 per binding. Requirements Requirement 1. Cool Boards's accountants predict that purchasing the bindings from Otter will enable the company to avoid $3,300 of fixed overhead. Prepare an analysis to show whether Cool Boards should make or buy the bindings. (If a box is not used in the table, leave the box empty; do not enter a zero. Use a minus sign or parentheses for subtracting numbers that are typically shown enclosed in parentheses in an outsourcing analysis. All boxes in the Cost to Make Minus the Cost to Buy column should have a value entered.) Cool Boards Snowboard Mfg. Inc. Outsourcing Analysis Costs Make Buy Cost to Make Minus Binding Bindings Cost to Buy $ Direct materials 17,260 Total cost: RE Direct materials 17260 17260 Direct labour. 3500 Direct labour 3500 3,500 2,050 6,600 Variable manufacturing overhead Variable overhead 2050 2050 Fixed nufa uring overhead $ 6600 Fixed overhead 3300 29,410 3300 Total manufacturing costs $ 19.61 Cost per pair ($29,410 / 1,500) Purchase price from Otter Transportation Logo Print Done Total cost of 1,500 bindings
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