Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please solve the question We Make Company has traditionally manufactured a number of different standard machine parts. It is now exploring an outsourcing decision for

image text in transcribed

image text in transcribed

please solve the question

We Make Company has traditionally manufactured a number of different standard machine parts. It is now exploring an outsourcing decision for several of the parts that it currently produces. Cost Information for one such machine part is given below'. Variable cost/unit Fixed manufacturing costs (total) Allocated corporate overhead Unit product cost (based on 500 units) $ 38.00 4,060.00 6,660.00 $ 59.44 Fifty percent of the fixed manufacturing costs are directly traceable to this specific machine part and therefore avoidable. An outside supplier will sell the part at a price of $58 per unit if 500 units are purchased. Required: Prepare an analysis whether We Make should continue to manufacture this machine part or whether it should purchase it from the outside supplier (Negative amounts should be indicated by a minus sign. Round "Per Unit" to 2 decimal places.) 500 Units Per Unit Make Buy Purchase Difference Variable cost Fixed manufacturing overhead Common costs Total costs Per Unit Ma Purchase Variable cost Fixed manufacturing overhead Common costs Total costs Should the company make or buy? O Make O Buy

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

Step: 3

blur-text-image

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

More Books

Students also viewed these Accounting questions

Question

Let {B(t),t > 0} be standard Brownian Motion. For 0

Answered: 1 week ago

Question

2. Define identity.

Answered: 1 week ago

Question

1. Identify three communication approaches to identity.

Answered: 1 week ago

Question

4. Describe phases of majority identity development.

Answered: 1 week ago