Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following to answer questions 23-24: Truckel, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows: Direct

image text in transcribed
Use the following to answer questions 23-24: Truckel, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct laborS11 Variable overhead Fixed overhead Total S24 23. Saran Company has contacted Truckel with an offer to sell it 5,000 of the wickets for $18 each. If Truckel makes the wickets, variable costs are $16 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Truckel make or buy the wickets? A) Make; savings- $10,000 B) Buy; savings $5,000 C) Buy; savings $15,000 D) Make; savings $5,000 24. The fixed overhead is an allocated common cost. How much is the relevant cost of the wicket? A) $19 B) $36 C) $16 D) $24 Use the following to answer questions 25-26: The Selling Division's unit sales price is $25 and its unit variable cost is $15. Its capacity is 10,000 units. Fixed costs per unit are $6. Current outside sales are 8,000 units. What is the Selling Division's opportunity cost per unit from selling 2,000 units to the Purchasing Division? A) S10 B) $25 C) SO D) $4 25. 26. What is the Selling Division's opportunity cost per unit from selling 3,000 units to the Purchasing Division? A) SO B) $10 C) $25 D) $4

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

More Books

Students also viewed these Accounting questions