{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-27T16:08:12-04:00", "answer_date": "2024-05-27 16:08:12", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1789162", "url": "\/study-help\/questions\/the-management-of-shatner-manufacturing-company-is-trying-to-decide-1789162", "question_creation_date_js": "2024-05-27T16:08:12-04:00", "question_creation_date": "May 27, 2024 04:08 PM", "meta_title": "[Solved] The management of Shatner Manufacturing C | SolutionInn", "meta_description": "Answer of - The management of Shatner Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy | SolutionInn", "meta_keywords": "management,shatner,manufacturing,company,decide,continue,part,buy,supplier,called,cisco,component", "question_title_h1": " The management of Shatner Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier.", "question_title": " The management of Shatner Manufacturing Company is trying to decide whether", "question_title_for_js_snippet": "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 1 7 900 units of CISCO were produced in the Machining Department 2 Variable manufacturing costs applicable to the production of each CISCO unit were direct materials $5 08, direct labor $4 15, indirect labor $0 41, utilities $0 44 3 Fixed manufacturing costs applicable to the production of CISCO were Cost Item Direct Allocated Depreciation $1,900 $910 Property 540 340 taxes Insurance 920 580 $3,360 $1,830 All variable manufacturing and direct fixed costs will be eliminated if CISCO is purchased Allocated costs will not be eliminated if CISCO is purchased So if CISCO is purchased, the fixed manufacturing costs allocated to CISCO will have to be absorbed by other production departments 4 The lowest quotation for 7,900 CISCO units from a supplier is $79,899 5 If CISCO units are purchased, freight and inspection costs would be $0 37 per unit, and receiving costs totaling $1,270 per year would be incurred by the Machining Department ", "question_description": "\"image\"image\"image", "transcribed_text": "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. 1.7.900 units of CISCO were produced in the Machining Department. 2. Variable manufacturing costs applicable to the production of each CISCO unit were: direct materials $5.08, direct labor $4.15, indirect labor $0.41, utilities $0.44. 3. Fixed manufacturing costs applicable to the production of CISCO were: Cost Item Direct Allocated Depreciation $1,900 $910 Property 540 340 taxes Insurance 920 580 $3,360 $1,830 All variable manufacturing and direct fixed costs will be eliminated if CISCO is purchased. Allocated costs will not be eliminated if CISCO is purchased. So if CISCO is purchased, the fixed manufacturing costs allocated to CISCO will have to be absorbed by other production departments. 4. The lowest quotation for 7,900 CISCO units from a supplier is $79,899. 5. If CISCO units are purchased, freight and inspection costs would be $0.37 per unit, and receiving costs totaling $1,270 per year would be incurred by the Machining Department.", "related_book": { "title": "Financial Accounting An Integrated Statements Approach", "isbn": "324312113, 978-0324312119", "edition": "2nd Edition", "authors": "Jonathan E. Duchac, James M. Reeve, Carl S. Warren", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/126.jpg", "uri": "\/textbooks\/financial-accounting-an-integrated-statements-approach-2nd-edition-126", "see_more_uri": "" }, "free_related_book": { "isbn": "0547354037", "uri": "\/textbooks\/algebra-2-practice-and-problem-solving-workbook-1st-edition-978-0547354033-161194", "name": "Algebra 2 Practice And Problem Solving Workbook", "edition": "1st Edition" }, "question_posted": "2024-05-27 16:08:12", "see_more_questions_link": "\/study-help\/questions\/business-general-management-2023-February-20", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/11-which-one-is-not-a-source-for-collecting-references-73229", "description": "11. Which one is not a source for collecting references? 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