Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prepare a make or buy analysis. BB5 FILE Prepare a make or buy analysis - Excel FORMULAS DATA REVIEW HOME INSERT PAGE LAYOUT VIEW Sign

image text in transcribedimage text in transcribed

Prepare a make or buy analysis. BB5 FILE Prepare a make or buy analysis - Excel FORMULAS DATA REVIEW HOME INSERT PAGE LAYOUT VIEW Sign In Calibri - 11 % Paste BIU- Alignment Number Conditional Format as Cell Cells Formatting Table Styles Clipboard Font Styles A1 X Alanco, Inc. manufactures a variety of products and is currently maunfacturing all B c D E H Alanco, Ind manufactures a variety of products and is currently maunfacturing all of its own component parts. 2 In outside supplier has offered to sell one of those components to Alanco. To evaluate this offer, the following 3 nformation has been gathered relating to the cost of producing the component internally: 4 $ 4.00 6.00 2.00 5.00 8.00 25.00 s 5 Direct materials 6 Direct labor 7 Variable manufacturing overhead 8 Fixed manufacturing overhead, traceable Fixed manufacturing overhead, common but allocated 10 Total cost 11 12 Supplier price $ 21.00 13 14 Units used per year 12,000 15 16 "Fixed manufacturing overhead, traceable is composed of two items: Depreciation of equipment (no resale value) 3096 Supervisor salary 7096 17 18 19 Assuming the company has no alternative use for the facilities now being used to produce the omponent complete the following analysis to determine if the outside supplier's offer should be accepted. Per Unit Differential Cost Make Buy 12,000 units Make Buy Cost of purchasing Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, common Total costs lased on this analysis, write an if statement to determine if Alanco should make or buy the component. Alanco should the component

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_2

Step: 3

blur-text-image_3

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

Cost Accounting Foundations And Evolutions

Authors: Michael R. Kinney, Cecily A. Raiborn

7th Edition

0324560559, 978-0324560558

More Books

Students also viewed these Accounting questions