Requirement 1.

Outdoor Life'sOutdoor Life's accountants predict that purchasing the bindings from MonroeMonroe will enable the company to avoid $2,500 of fixed overhead. Prepare an analysis to show whether. Outdoor Life should make or buy the bindings. (Only enter the net relevant costs. For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the bindings in-house.)

1 Requirements - X Data Table Direct materials $ Direct labor 1. Outdoor Life's accountants predict that purchasing the bindings from Monroe will enable the company to avoid $2,500 of fixed overhead. Prepare an analysis to show whether Outdoor Life should make or buy the bindings. The facilities freed by purchasing bindings from Monroe can be used to manufacture another product that will contribute $3,200 to profit. Total fixed costs will be the same as if Outdoor Life had produced the bindings. Show which alternative makes the best use of Outdoor Life's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. 17,590 3,100 2,080 6,600 2. Variable overhead Fixed overhead $ 29,370 Total manufacturing costs for 2,100 bindings Print Print Done Done Outdoor Life manufactures snowboards. Its cost of making 2,100 bindings is as follows: (Click the icon to view the costs.) Suppose Monroe will sell bindings to Outdoor Life for $16 each. Outdoor Life would pay $1 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.50 per binding. Read the requirements. Requirement 1. Outdoor Life's accountants predict that purchasing the bindings from Monroe will enable the company to avoid $2,500 of fixed overhead. Prepare an analysis to show whether Outdoor Life should make or buy the bindings. (Only enter the net relevant costs. For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the bindings in-house.) Make Outsource Difference Binding costs Bindings Bindings (Make-Outsource) Variable costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Monroe Transportation Logo Total differential cost of 2,100 bindings