TB Problem Qu. 12-175 The management of Wengel Corporation ... The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appea below Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $840, 700 $436, 800 $285,600 $243,800 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $202.000 of the fixed manufacturing expenses and $175,100 of the fixed selling and administrative expenses are avoidable if product B90D is discontinued. Required: 1. What would be the financial advantage (disadvantage) of dropping B90D? The financial advantage (disadvantage) is 2. Should B90D be dropped? Yes . No Exercise 12-4 Special Order Decision (L012-4) Imperial Jewelers manufactures and sells a gold bracelet for $408.00. The company's accounting system says that the unit product cost for this bracelet is $269.00 as shown below: Direct materials Direct labor Manufacturing overhead Unit product cost $144 89 36 $269 The members of a wedding party have approached Imperial Jewelers about buying 12 of these gold bracelets for the discounted price of $368.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperiat Jewelers to buy a special tool for $466 and that would increase the direct materials cost per bracelet by $5. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $6.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party's order using its existing manufacturing capacity Required: What is the financial advantage disadvantage) of accepting the special order from the wedding party? 2. Should the company accept the special order? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) of accepting the special order from the wedding party Required 23 Part U67 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the 15,300 units of the part that are needed every year. Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $ 2.20 $3.20 $6.00 $6.50 $7.68 $4.70 An outside supplier has offered to make the part and sell it to the company for $25.00 each. If this offer is accepted, the supervis salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was pure many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire com Ir the outside supplier's offer were accepted, only $21.300 of these allocated general overhead costs would be avoided. Required: a. Prepare a report that shows the financial impact of buying part U67 from the supplier rather than continuing to make it inside tr company b. Which alternative should the company choose? Complete this question by entering your answers in the tabs below. Required a Required B Prepare a report that shows the financial impact of buying part 467 from the supplier rather than continutng to make it inside the company Make Buy Duct materials Director Variable overhead Superiors say Depreciation of specialment Al general overtad Osta de puncte pre TO Prev 3 5 Part 067 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the 15.300 units of the part that are needed every year. Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $2.20 $3.20 $6.00 $5.50 $7.60 $4.70 An outside supplier has offered to make the part and sell it to the company for $25.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company If the outside supplier's offer were accepted, only $21.300 of these allocated general overhead costs would be avoided. Required: a. Prepare a report that shows the financial impact of buying part UG7 from the supplier rather than continuing to make it inside the company b. Which alternative should the company choose? Complete this question by entering your answers in the tabs below. Required A Requires Which alternative should the company choose? The total cost of the "make" alternative From the company by the par Required A