Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

X Company currently buys a part from a supplier for $10.85 per unit but is considering making the part itself next year. This year, they

image text in transcribed

X Company currently buys a part from a supplier for $10.85 per unit but is considering making the part itself next year. This year, they purchased 3,300 units of this part. Estimated costs to make the part are: Per-Unit Total Direct materials Direct labor Variable overhead Fixed overhead Total $7,920 11,979 9,240 18,480 $14.43 $47,619 $2.40 3.63 2.80 5.60 Of the estimated fixed overhead, 5,729 are common costs that would be allocated to the part; the rest would be additional fixed overhead costs. X Company currently rents unused factory space to a tenant for $2,300; it will have to use this space to make the part 2. If X Company will need 3,300 units again next year and continues to buy the part instead of making it, it will save Submit Answer Tries 0/3 3. X Company is somewhat uncertain how many units of the part it will need next year. How many units would make the company indifferent between continuing to buy the part and making it? Submit Answer Tries 0/3

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

Will You Be My Internal Audit Manager

Authors: Benito Gross

1st Edition

B09774C8CK, 979-8521636563

More Books

Students also viewed these Accounting questions