Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

The Serendipity Corporation manufactures cellular modems. It manufactures its own cellular modern circuit boards (CMCB), an important part of the cellular modem It reports the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The Serendipity Corporation manufactures cellular modems. It manufactures its own cellular modern circuit boards (CMCB), an important part of the cellular modem It reports the following cost information about the costs of making CMCBs in 2020 and the expected costs in 2021- Click the icon to view the costs.) Question Help (Click the icon to view the make-versus buy information.) Read the requirements ols Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2021 Total Manufacturing Manufacturing Costs of CMCB Cost per Unit Direct materials Direct manufacturing labor Variable batch manufacturing costs Fixed manufacturing costs Avoidable foxed manufacturing costs Fotoran The Serendipity Corporation manufactures cellular modems. It manufactures its (Click the icon to view the make-versus-buy information) own cellular modem circuit boards (CMCB), an important part of the cellular modem. It reports the following cost information about the costs of making in 2020 and the expected costs in 2021 * More Info (Click the icon to view the costs.) Requirement 1. Calculate the total expected manufacturing cost per unit d Serendipity manufactured 9,000 CMCBs in 2020 in 50 batches of 180 each In 2021, Serendipity anticipates needing 4,000 CMCBs The CMCBs would be Total Manufacturing produced in 40 batches of 100 each The Maverick Corporation has approached Serendipity about supplying CMCBs to Serendipity in 2021 at $110 per CMCB on Costs of CMCB whatever delivery schedule Serendipity wants Direct materials Data Table X Direct manufacturing labor Variable batch manufacturing costs Fbed manufacturing costs Current Costs Expected Costs Avoidable fixed manufacturing costs in 2020 in 2021 Variable manufacturing costs Enter any number in the edit hields and 165 5 170 Direct material cost per CMCB 45 35 parts Direct manufacturing tabor cost per CMCB remaining Variable manufacturing cost per batch for setups materials To TEDUCATION IS reserved. TOTUSETTEVery Post Contactos -X 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2021 2. Suppose the capacity currently used to make CMCBs will become ide if Serendipity purchases CMCBs from Maverick On the basis of financial considerations alone, should Serendipity make CMCBs or buy them from Maverick Show your calculations 3. Now suppose that if Serendipity purchases CMCBs from Maverick, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Eleanor Corporation Serendipity estimates the following incremental revenues and costs from CB3s Total expected incremental future revenues $2.400,000 Total expected incremental future costs $2,520,000 On the basis of financial considerations alone, should Serendipity make CMCBs or buy them from Maverick? Show your calculations e exa con in 2020 in 2021 $ 165 $ 170 45 35 S Variable manufacturing costs Direct material cost per CMCB Direct manufacturing labor cost per CMCB Variable manufacturing cost per batch for setups, materials handling, and quality control Fixed manufacturing cost Fixed manufacturing overhead costs that can be avoided if CMCBs are not made Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBs are not made 1,500 2.000 cturir man 810,000 220,000 cturin ed n beri 990,000 520,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Describe ERP and how it can create efficiency within a business

Answered: 1 week ago