Question
Question 2 of 2 < /50 1 The management of Oriole Manufacturing Company is trying to decide whether to continue manufacturing a part or
Question 2 of 2 < /50 1 The management of Oriole Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. The part, called CISCO is a component of the company's finished product The following information was collected from the accounting records and productiondata for t 1.8.000 units of CISCO were produced in the Machining Department 2. Variable manufacturing costs applicable to the production of each CISCO unit were direct materials $504, direct labor $427, indirect labor $0.475041 3. Fixed manufacturing costs applicable to the production of CISCO were wear ending December 31, 2022 Cost Item Depreciation Direct Allocated Total $1.900 $900 $2.000 Property taxes Insurance 510 280 790 800 640 1.520 $3.290 $1.820 5.110 All variable manufacturing and direct fixed costs will be eliminated if CISCO is purchased Allocated costs will not be eliminated it) CISCO is purchased So if CISCO is purchased the fed manufacturing costs allocated to CISCO will have to bed by production departments 4. The lowest quotation for 8000 CISCO units from a supplier is $81.290 5. CISCO units are purchased, freight and inspection costs would be $0.35 per unit, and receiving carts totaling $1,240 pervar would be incurred by the Machining Department (a) Prepare an incremental analysis for CISCO. Enter negative amounts using either a negative sign preceding the number-45 parentheses eg (45)
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