Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2018. The total expected manufacturing cost per unit of making CMCBs
Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2018. The total expected manufacturing cost per unit of making CMCBs in 2018 is $ Requirement 2. Suppose the capacity currently used to make CMCBs will become idle if Sundance purchases CMCBs from Moonbeam. On the basis of financial considerations alone, should Sundance make CMCBs or buy them from Moonbeam? Show your calculations. (If a box is not used in the table, leave the box empty: do not enter a zero.) Make Buy Total Per Unit Total Per Unit Direct materials Direct manufacturing labor Variable batch manufacturing costs Unavoidable fixed manufacturing costs Total relevant costs Sundance should CMCBs because it costs Data table Current Costs Expected Costs in 2017 in 2018 Variable manufacturing costs Direct material cost per CMCB $ 165 $ 185 58 25 Direct manufacturing labor cost per CMCB Variable manufacturing cost per batch for setups, materials handling, and quality control Fixed manufacturing cost Fixed manufacturing overhead costs that can be avoided if CMCBs 1,400 1,800 are not made 495,000 175,000 Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBs are not made 1,540,000 550,000 Print Done Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2018. The total expected manufacturing cost per unit of making CMCBs in 2018 is $ Requirement 2. Suppose the capacity currently used to make CMCBs will become idle if Sundance purchases CMCBs from Moonbeam. On the basis of financial considerations alone, should Sundance make CMCBs or buy them from Moonbeam? Show your calculations. (If a box is not used in the table, leave the box empty: do not enter a zero.) Make Buy Total Per Unit Total Per Unit Direct materials Direct manufacturing labor Variable batch manufacturing costs Unavoidable fixed manufacturing costs Total relevant costs Sundance should CMCBs because it costs Data table Current Costs Expected Costs in 2017 in 2018 Variable manufacturing costs Direct material cost per CMCB $ 165 $ 185 58 25 Direct manufacturing labor cost per CMCB Variable manufacturing cost per batch for setups, materials handling, and quality control Fixed manufacturing cost Fixed manufacturing overhead costs that can be avoided if CMCBs 1,400 1,800 are not made 495,000 175,000 Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBs are not made 1,540,000 550,000 Print Done
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started