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Strunz Corp. manufactures its own component parts. The following costs were incurred in the manufacture of 20922 units of a part: Direct materials Direct labour
Strunz Corp. manufactures its own component parts. The following costs were incurred in the manufacture of 20922 units of a part: Direct materials Direct labour Variable overhead Fixed overhead $ 5.61 30.14 12.92 16.85 $65.52 James Co. has offered to sell 20922 units of the part to Strunz for $59.93 per unit. If Strunz accepts the offer. S13.19 per unit of the fixed overhead could be eliminated and the released facilities could be used to save relevant costs in the manufacture of another part. In order for Strunz to realize an overall saving of 837767. what amount of relevant costs would have to be saved (this amount could be negative) by using the released facilities in the manufacture of the part? Select one: ca. $116954 b. $-2612 c. $196774 d. $273349 Check 8. The following data pertain to activity and costs for two recent months: Activity level in units October 5,000 November 10.000 2 Variable costs Fixed costs Mixed costs Total costs $10,000 30,000 20,000 $60,000 ? $75,000 Assuming that these activity levels are within the relevant range, what were the mixed costs for November
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