{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-09-16T03:18:45-04:00", "answer_date": "2024-09-16 03:18:45", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "11143942", "url": "\/study-help\/questions\/pottery-ranch-inc-has-been-manufacturing-its-own-finials-for-11143942", "question_creation_date_js": "2024-09-16T03:18:45-04:00", "question_creation_date": "Sep 16, 2024 03:18 AM", "meta_title": "[Solved] Pottery Ranch Inc. has been manufacturing | SolutionInn", "meta_description": "Answer of - Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at | SolutionInn", "meta_keywords": "pottery,ranch,inc,manufacturing,finials,curtain,rods,company,operating,100%,capacity,variable", "question_title_h1": "Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing", "question_title": "Pottery Ranch Inc. has been manufacturing its own finials for its curtain", "question_title_for_js_snippet": "Pottery Ranch Inc has been manufacturing its own finials for its curtain rods The company is currently operating at 100 of capacity, and variable manufacturing overhead is charged to production at the rate of 66 of direct labor cost The direct materials and direct labor cost per unit to make a pair of finials are $3 81 and $4 68, respectively Normal production is 28,400 curtain rods per year A supplier offers to make a pair of finials at a price of $13 35 per unit If Pottery Ranch accepts the suppliers offer, all variable manufacturing costs will be eliminated, but the $45,900 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products (a) Prepare an incremental analysis to decide if Pottery Ranch should buy the finials (Round answers to 0 decimal places, e g 1250 Enter negative amounts using either a negative sign preceding the number e g 45 or parentheses e g (45) ) Make Buy Net Income Increase (Decrease) Direct materials $ $ $ Direct labor Variable overhead costs Fixed manufacturing costs Purchase price Total annual cost $ $ $ (b) Should Pottery Ranch buy the finials , Pottery Ranch should the finials (c) Would your answer be different in (b) if the productive capacity released by not making the finials could be used to produce income of $57,402 , income would by $", "question_description": "

Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 66% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $3.81 and $4.68, respectively. Normal production is 28,400 curtain rods per year. A supplier offers to make a pair of finials at a price of $13.35 per unit. If Pottery Ranch accepts the suppliers offer, all variable manufacturing costs will be eliminated, but the $45,900 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. (a) Prepare an incremental analysis to decide if Pottery Ranch should buy the finials. (Round answers to 0 decimal places, e.g. 1250. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Make Buy Net Income Increase (Decrease) Direct materials $ $ $ Direct labor Variable overhead costs Fixed manufacturing costs Purchase price Total annual cost $ $ $ (b) Should Pottery Ranch buy the finials? , Pottery Ranch should the finials. (c) Would your answer be different in (b) if the productive capacity released by not making the finials could be used to produce income of $57,402? , income would by $<\/p>", "transcribed_text": "", "related_book": { "title": "Fundamentals of Cost Accounting", "isbn": "9780078025525, 9780077517359, 77517350, 978-0077398194", "edition": "3rd Edition", "authors": "William Lanen, Shannon Anderson, Michael Maher", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/108.jpg", "uri": "\/textbooks\/fundamentals-of-cost-accounting-3rd-edition-108", "see_more_uri": "" }, "free_related_book": { "isbn": "", "uri": "", "name": "", "edition": "" }, "question_posted": "2024-09-16 03:18:45", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/applied-statistics-and-probability-for-engineers\/in-cost-estimation-the-total-cost-of-a-project-is-2016645", "description": "In cost estimation, the total cost of a project is the sum of component task costs. 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