Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

-X Data Table Direct materials .... $ 17,750 - - - - - Direct labor... 3,400 Variable manufacturing overhead ..... 2,355 6,650 Fixed manufacturing overhead

image text in transcribed
image text in transcribed
image text in transcribed
-X Data Table Direct materials .... $ 17,750 - - - - - Direct labor... 3,400 Variable manufacturing overhead ..... 2,355 6,650 Fixed manufacturing overhead ... $ 30,155 Total manufacturing costs .. Cost per pair ($30,155 - 1,850) $ 16.30 .... Print Done * Requirements - X 1. Wild Ride's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,600 of fixed overhead. Prepare an analysis to show whether the company should make or buy the bindings. 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3,300 to profit. Total fixed costs will be the same as if Wild Ride had produced the bindings. Show which alternative makes the best use of Wild Ride's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. Print Done Wild Ride manufactures snowboards. Its cost of making 1.850 bindings is as follows: (Click the icon to view the costs) Suppose an outside supplier will soll bindings to Wild Ride for $16 each. Wild Ride will pay $200 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.60 per binding, Read the requirement Requirement 1. Wild Ride's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,600 of fixed overhead Prepare an analysis to show whether the company should make or buy the bindings. (Enter a 'O' for ny zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar. Use a minus sign or parentheses in the Difference column when the cost to make exceed the cost to buy) Incremental Analysis Make Buy (Outsource) Outsourcing Decision Bindings Bindings Difference Variable Costs

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_2

Step: 3

blur-text-image_3

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

Preliminary Audit Results Montanas State Employee Compensation 1990

Authors: Waters Consulting Group, Montana. State Employee Compensation Committee

1st Edition

1378152700, 978-1378152706

More Books

Students also viewed these Accounting questions

Question

Evaluating Group Performance?

Answered: 1 week ago