Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Winslon Company makes decorative wedding cakes. The company is considering Fixed costs are primarily the dep buying the cakes rather than baking them, which will

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Winslon Company makes decorative wedding cakes. The company is considering Fixed costs are primarily the dep buying the cakes rather than baking them, which will allow it to concentrate on and mixers. Winston expects to decorating. The company averages 100 wedding cakes per year and incurs the for $24 following costs from baking wedding cakes Should Winston make the c EB(Click the icon to view the costs.) 11. 12. If Winston decides to buy th Winston should also conside 11. Should Winston make the cakes or buy them? Why? (For the Difference column, use a minus sign or parentheses on the cost of making the cakes in-house.) Make Outsource Difference Cake costs cakes cakes (make -outsource) Variable costs Direct materials Direct labor Variable manufacturing overhead [ 675 900 300 675 900 300 Enter any number in the edit felds and then continue to the next question e here to search makes decorative wedding Cakes. le Copally i onll Ninston Company uying the cakes rather than baking them, which will allow i to concentrate on decorating The company averages 100 wedding cakes per year and incurs the following costs from baking wedding cakes EEB(Click the icon to view the costs.) and mixers. Winston expects to retain the e for $24. 11. Should Winston make the cakes or bu If Winston decides to buy the cakes, wi Winston should also consider? 12. 300 2400) (525) Variable manufacturing overhead 300 2400 Purchase cost Totaldfferential cost of cakes1875 2400 Winston should continue to make the cakes. Outsourcing will decrease profits by $525 12. If Winston decides to buy the cakes, what are some qualitative factors that Winston should also consider? O A. Qualitative fadors include considering sunk costs and manager's opinions. B. Qualitative factors include separating fixed and variable costs. Enter any number in the edit fields and then continue to the next question. EER (Click the icon to view te costs.) Winston should also Purchase cost 1875 2400 (525) Total differential cost of cakes Winston shouldcontinue to make the cakes. Outsourcing will decrease profits by $525 12. If Wins ton decides to buy the cakes, what are some qualitative factors that Winston should also consider? O A. Qualitative factors include considering sunk costs and manager's opinions. O B. Qualitative factors include separating fixed and variable costs. C. Qualitative factors include contribution margins of the various products produced. D. Qualitative factors include quality and on-time delivery Enter any number in the edit fields and then continue to the next question ing Fixed costs are primarily the depreciation on kitchen equipment such as ovens and mixers. Winston expects to retain the equipment. Winston can buy the cakes e for $24. 11. 12. Should Winston make the cakes or buy them? Why? If Winston decides to buy the cakes, what are some qualitative factors that Winston should also consider? (525) retain t i Data Table cakes o the cake der? 675 900 300 1,250 S 3,125 100 31 Direct materials Direct labor Variable manufacturing overhead sFixed manufacturing overhead Total manufacturing cost Number of cakes Cost per cake re sun xed mar on-ti Print Done en continue to the next

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

Performance Auditing A Measurement Approach

Authors: Ronell B. Raaum, Stephen L. Morgan

4th Edition

ISBN: 0894134647, 978-0894134647

More Books

Students also viewed these Accounting questions