Question 10 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 61% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $3.56 and $4.75, respectively. Normal production is 29,100 curtain rods per year. A supplier offers to make a pair of finials at a price of $13.46 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $40,400 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. (a) Prepare the incremental analysis for the decision to make or buy the finials. (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. L (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 $70,248? , income would by $ Question 14 Coronado Industries uses 15000 units of Part A in producing its products. A supplier offers to make Part A for $4. Coronado Industries has relevant costs of $6 a unit to manufacture Part A. If there is excess capacity, the opportunity cost of not buying Part A from the supplier is ronada dandustries users to do wosits of part in producing its products.ie 0 $0. 0 $90000. O $60000. O $30000. Question 15 Vaughn Manufacturing, Inc.currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $14 Variable overhead Fixed overhead Total $27 The fixed overhead is an allocated common cost. How much is the relevant cost of the wicket? O $27 $22 $41 $19