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Question 6 Every year Concord Industries manufactures 10,000 units of part 231 for use in its production cycle. The per unit costs of part 231
Question 6 Every year Concord Industries manufactures 10,000 units of part 231 for use in its production cycle. The per unit costs of part 231 are as follows: $ 4 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total 7 10 $30 Flintrock, Inc., has offered to sell 10,000 units of part 231 to Concord for $32 per unit. If Concord accepts Flintrock's offer, its freed-up facilities could be used to earn $11,700 in contribution margin by manufacturing part 240. In addition, Concord would eliminate 40% of the fixed overhead applied to part 231. (a) Calculate total relevant cost to make and net cost to buy. Total relevant cost to make Net relevant cost to buy (b) Should Concord accept Flintrock's offer? Click if you would like to show Work for this question Open Show Work Coronado Industries manufactures several products including a basic case for a popular smartphone. The company is considering adopting an activity-based costing approach for setting its budget. The company's production activities, budgeted activity costs, and cost drivers for the coming year are as follows. Activity Machine setup Inspection Materials receiving Activity Overhead $ $ 204,440 136,770 211,200 Cost Driver # of setups # of quality tests # of purchase orders Cost Driver Quantity 760 470 1,650 The budgeted data for smartphone case production are as follows. Direct materials Direct labor Number of setups Number of quality tests Number of purchase orders Production $2.20 per unit $0.59 per unit 86 380 60 15,000 units Calculate the activity rate for each cost pool. (Round answers to o decimal places, e.g. 5,275.) Machine setup / setup Inspection $ / test Materials receiving $ / PO Calculate the activity-based unit cost of the smartphone case. (Round answer to 2 decimal places, e.g. 15.25.) Activity-based unit cost $
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