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Requirement 1. Mountain Fun's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,100 of fixed overhead. Prepare
Requirement 1. Mountain Fun's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,100 of fixed overhead. Prepare an analysis to show whether Mountain Fun should make or buy the ngs Enter a0 or any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar. Use a minus sign or parentheses in the Difference column when the cost o make exceeds the to buy.) Incremental Analysis Data Table Make Buy (Outsource) Bindings Outsourcing Decision Bindings Variable Costs Plus: Fixed Costs Total cost of 26,200 bindings Decision: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead. Total manufacturing costs Cost per pair ($235,800/ 26,200) $ 21,000 86,400 42,000 86,400 235,800 $ Requirem bindings. amounts t purchasing bindings from the outside supplier can be used to manufacture another product that s the best use of Mountain Fun'ss facilities: (a) make bindings, (b) buy bindings and leave facili inal answers to the nearest whole dollar.) un had produced the alances. Round any per Buy the bindings. unit $9.00 Make the bindings. Buy (Outsource) Bindings
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