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PLEASE SOLVE THE REAL QUESTION LIKE THE EXAMPLE P25-25A (similar to) Question Help Wild Ride manufactures snowboards. Its cost of making 1,900 bindinge is as

image text in transcribedimage text in transcribedimage text in transcribedPLEASE SOLVE THE REAL QUESTION LIKE THE EXAMPLE

P25-25A (similar to) Question Help Wild Ride manufactures snowboards. Its cost of making 1,900 bindinge is as follows: (Click the icon to view the costs. Suppose Topnotch will sell bindings to Wid Ride for $14 each. Wid Ride would pay $1 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.50 per binding. Read the mquirements Requirement 1. Wild Ride's accountants predict that purchasing the bindings from Topnotch wil enable the company to avoid $2.000 of fixed overhead. Prepare an analysis to show whether Wild Ride should make or buy the bindings. (Only enter the nel relevant costs. For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the bindings in-house.) Make Outsource Bindings Difference (MakeOutsource) Binding costs Bindings i Data Table Variable costs: $ $ 17.520 Direct materials Direct labor S 17,520 2,800 2,030 2.000 Direct materiale Direct labar Variable overhead Fixed costs Purchase price from Topnotch Transporlation Logo 2.300 2.030 2.000 (26,600) Variable overhead Fixed Overhead 17,520 2,800 2,030 6.900 29,250 3 26,800 1,500 11,900, S Total manufacturing costs for 1,900 bindings (950) 15,100) 29,450 24,350 $ Total differential cost of 1,900 bindings Print Done Should Wild Ride make or buy the bindings? EXAMPLE EXAMPLE EXAMPLE Decison: Masket the windings. Requirement 2. The faclities freed by purchasing bindings from Topnotch can be used to manufacture another product that wil contribute $3,200 to pront. Total fixed costs will be the same as if Wid Ride had produced the bindings Show which alternative makes the best use of Wild Ride's facilities. (Only enter the nat relevant costs. Enter al costs as positive values. Use a minus sign or parentheses for decreases ta net casts Make Bindinge Outsource Bindings Facilities Make New Idle Product Binding costs Variable Costa This question is complete. Move your cursor over or tap on the red arrows to see incorrect answers Requirement 2. The facilities freed by purchasing bindings from Topnotch can be used to manufacture another product that will contribute $3,200 to profit. Total fixed costs will be the same as if Wild Ride had produced the bindings. Show which alternative makes the best use of Wild Ride's facilities. (Only enter the net relevant costs. Enter all costs as positive values. Use a minus sign or parentheses for decreases to net costs.) Outsource Bindings Make Facilities Make New Binding costs Bindings Idle Product i Data Table Variable Costs: Direct materials $ 17,520 Direct labor 2,800 Direct materials 17,520 Variable overhead 2,030 Direct labor 2,800 Fixed costs 2,000 $ 2,000 Variable overhead Purchase price from Topnotch 26,600 26,600 2,030 6,900 Fixed overhead Transportation 1,900 1,900 $ 29,250 Logo 950 Total manufacturing costs for 1,900 bindings 950 Expected profit from new product (3,200) $ 24,350 29,450 $ 28,250 Print Done Expected net cost of obtaining 1,900 bindings Which alternative makes the best use of Wild Ride's facilities? EXAMPLE EXAMPLE EXAMPLE Decision: Make the bindings. This question is complete. Move your cursor over or tap on the red arrows to see incorrect answers. Outdoor Lite manufactures snowboards. Ite cost of making 1,700 bindinge is as follows: Click the icon to view the casts.) Suppose Topnotch wil sel bindings to Oudoor Life for $13 nach Outdoor Life would pay $ per unit to transport the bindings to its manufacturing plant, where it would add its can logo at a cost of $0.50 per binding Read the requirements. Requirement 1. Outdoor Life's accounilarils predict that purchasing the bindings from Topnotch will enable the corrparty lo avoid $2,200 of fixed werhead. Prepare an analysis I sw wheller Outdoor Life should make or buy the bindings. (Only enter the nel relevant costs. For the Difference column, use a minua sign or parentheses only when the cost of outsourcing exceeds the cost of making the bindings in-house.) Make Bindings Outsource Bindings Difference Make-Outsource Binding costs S S i Data Table Variable costs Direct materials Direct labor Variable overhead Fixed costs Purchase price from Topnotch Transporlar 17,530 3,400 2040 17.530 3,400 2,040 2.200 $ 2200 17.530 Direct materials Direct labor Variable overhead 3.400 2,040 7.000 Loga Fored overhead Total manufacturing costs for 1,700 bindings $ 29.970 Tatal differential cost of 1.700 bindings REAL REAL REAL FLEASE SOLVE LIKE THE EXAMPLE Print Done

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