Sa core: 0 of 1 pt 5 of 5 (4 complete) HW Score: 49%, 2.45 of 5 -25-31B (similar to) Question Help X-Perience manufactures snowboards. Its cost of making 2,000 bindings is as follows: (Click the icon to view the costs.) Suppose Livingston will sell bindings to X-Perience for $13 each. X-Perience would pay $2 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.70 per binding. Read the requirements Requirement 1. X-Perience's accountants predict that purchasing the bindings from Livingston will enable the company to avoid $2,500 of fixed overhead. Prepare an analysis to show whether X-Perience 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 Livingston Transportation Logo Total differential cost of 2,000 bindings Tulence IUI STJ each. X-Perience would pay $2 per unit to transport the bindings to its manufacturir logo at a cost of $0.70 per binding. ments X-Periend If fixed now whether i Requirements se a mi y when the Binding co erials 1. X-Perience's accountants predict that purchasing the bindings from Livingston will enable the company to avoid $2,500 of fixed overhead. Prepare an analysis to show whether X-Perience should make or buy the bindings. 2. The facilities freed by purchasing bindings from Livingston can be used to manufacture another product that will contribute $2,600 to profit. Total fixed costs will be the same as if X-Perience had produced the bindings. Show which alternative makes the best use of X-Perience's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. werhead -e from Livings n Print Done erential cost of 2,000 bindings bindings to X-Perience for $13 each. X - Perience would pay $2 per unit to transport the bindings to its manu cost of $0.70 per binding. ce's accountant X-Periences cost of outsourd i Data Table avoid ,500 - Xence column, osts Direct materials $ 17,510 3,000 Direct labor Variable overhead 2,120 7,000 Fixed overhead Total manufacturing costs for 2,000 bindings $ 29,630 gston Print Done of 2,000 bindings edit fields and then click Check Answer. Clear All Check Sa core: 0 of 1 pt 5 of 5 (4 complete) HW Score: 49%, 2.45 of 5 -25-31B (similar to) Question Help X-Perience manufactures snowboards. Its cost of making 2,000 bindings is as follows: (Click the icon to view the costs.) Suppose Livingston will sell bindings to X-Perience for $13 each. X-Perience would pay $2 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.70 per binding. Read the requirements Requirement 1. X-Perience's accountants predict that purchasing the bindings from Livingston will enable the company to avoid $2,500 of fixed overhead. Prepare an analysis to show whether X-Perience 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 Livingston Transportation Logo Total differential cost of 2,000 bindings Tulence IUI STJ each. X-Perience would pay $2 per unit to transport the bindings to its manufacturir logo at a cost of $0.70 per binding. ments X-Periend If fixed now whether i Requirements se a mi y when the Binding co erials 1. X-Perience's accountants predict that purchasing the bindings from Livingston will enable the company to avoid $2,500 of fixed overhead. Prepare an analysis to show whether X-Perience should make or buy the bindings. 2. The facilities freed by purchasing bindings from Livingston can be used to manufacture another product that will contribute $2,600 to profit. Total fixed costs will be the same as if X-Perience had produced the bindings. Show which alternative makes the best use of X-Perience's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. werhead -e from Livings n Print Done erential cost of 2,000 bindings bindings to X-Perience for $13 each. X - Perience would pay $2 per unit to transport the bindings to its manu cost of $0.70 per binding. ce's accountant X-Periences cost of outsourd i Data Table avoid ,500 - Xence column, osts Direct materials $ 17,510 3,000 Direct labor Variable overhead 2,120 7,000 Fixed overhead Total manufacturing costs for 2,000 bindings $ 29,630 gston Print Done of 2,000 bindings edit fields and then click Check Answer. Clear All Check
