Question
The management of Shatner Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier.
The management of Shatner Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. The part, called CISCO is a component of the company's finished product The following Information was collected from the accounting records and production data for the year ending December 31, 2020. CISCO unit were 18.100 units of CISCO were produced in the Machining Department. 2. Vartable manufacturing costs applicable to the production of each direct materiale $4.66, direct labor $4.00, Indirect labor $0.48, utilities $0.35 3. Fled manufacturing costs applicable to the production of CISCO were Cost Item Direct Allocated Depreciation $2,100 $910 Property taxes Insurance 490 430 950 620 $3,540 $1,960 All variable manufacturing and direct fixed costs will be eliminated CISCO is purchased. Allocated costs will not be elated CISCO is purchased. So if CISCO le purchased, the foved manufacturing costs allocated to CISCO will have production departments 4. The lowest quotation for 8.100 CISCO units from a supplier is $77.545 absorbed by other 5. if CISCO units are purchased, freight and Inspection costs would be $0.34 per unit and receiving costs totaling $1.290 per year would be Incurred by the Machining Department (a) Prepare an incremental analysts for CISCO. (Enter negative amounts using either a negative sign preceding the number es-45 or parentheses (451) Direct material Direct labor Indirect labor Utilites Depreciation Property taxes Insurance Purchase price Freight and Inspection Receiving costs Total annual cost $ Make CISCO Buy CISCO S Net Income Increase Decreasel
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