Question

000 Hon required to pay only for routine maintenance on the machine, which is estimated to be $8.000 over the machines life.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Differential analysis

Make Buy
Direct material 500000
Direct labor 600000
Variable factory overhead 175000
Opportunity Cost 30000
Purchase cost 1250000
Total relevant cost 1305000 1250000

Company should buy the parts

Add a comment
Know the answer?
Add Answer to:
000 Hon required to pay only for routine maintenance on the machine, which is estimated to...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • tament NJ 12 İNALYSTS 1. Badonsky Manufacturing needs to obtain a gear-cutting machine, which can purchased for $75,...

    tament NJ 12 İNALYSTS 1. Badonsky Manufacturing needs to obtain a gear-cutting machine, which can purchased for $75,000. Badonsky estimates that repair maintenance, insurance property tax expense will be $20,000 for the machine's five-year life. At the end machine's life, it will have no salvage value. As an alternative, Badonsky can lea machine for five years for $18,000 per year. If the machine is leased, Badonsky required to pay only for routine maintenance on the machine, which is estimated $8,000...

  • do part B only overhead costs of $195 000 and 10 500 tatal machine hours. Required...

    do part B only overhead costs of $195 000 and 10 500 tatal machine hours. Required (al Calculate the predetermined overhead rate. 12 marks) Suggested Answer: Click or tap here to enter text Page 3 of 12 DURCC5935 Cost and Management Accounting Semester 1 2020 Or you can use the given excel document to show your work for this question.) b) Determine the amount of underapplied or overappled manufacturing overhead for the quarter ending 30 September 2019. (3 marks) Suggested...

  • Citation Machine Google Docs Sell Books for Cas. n Month-One W. Watch Downuin Other booknaks >...

    Citation Machine Google Docs Sell Books for Cas. n Month-One W. Watch Downuin Other booknaks > Troy Engines, Lid, manufactures a variely of engines for use in heavy equipment The company has always produced all of the necessary parts for ts engnes, including al of the carburelors An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd, for a cost of $35 per unit. To evaluate this offer, Troy Engines, Ltd, has gathered the folowing...

  • Buoys and Gulls Corp manufactures three types of model boat. It is estimated that the following...

    Buoys and Gulls Corp manufactures three types of model boat. It is estimated that the following activity will take place during 2014: Product Direct material cost per unit ($) Direct labor cost per unit ($) Total output of each product (in units) Machine hours worked (per unit) Total machine hours worked A 100 80 1,000 1 ? B 60 70 2,000 2 ? C 60 40 5,000 7 ? Fixed manufacturing overheads for the period are estimated at $1,400,000. Overheads...

  • Replace Equipment A machine with a book value of $80,000 has an estimated five-year life. A...

    Replace Equipment A machine with a book value of $80,000 has an estimated five-year life. A proposal is offered to sell the old machine for $50,500 and replace it with a new machine at a cost of $75,000. The new machine has a five-year life with no residual value. The new machine would reduce annual direct labor costs from $11,200 to $7,400. a. Prepare a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1)...

  • A. Starling Co. is considering disposing of a machine with a book value of $23,600 and...

    A. Starling Co. is considering disposing of a machine with a book value of $23,600 and estimated remaining life of five years. The old machine can be sold for $5,600. A new high-speed machine can be purchased at a cost of $68,700. It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $23,500 to $19,500 if the new machine is purchased. The differential effect...

  • Which of the following would usually be found on a job cost sheet under a normal...

    Which of the following would usually be found on a job cost sheet under a normal costing system? Multiple Choice budgeted direct material costs, budgeted direct labor costs and budgeted factory overhead costs O actual direct material costs, actual direct labor costs and applied factory overhead costs budgeted direct material costs, budgeted direct labor costs and applied factory overhead costs O actual direct material costs, actual direct labor costs and actual factory overhead costs Multiple Choice 0 labor cost of...

  • Instant Enterprises manufactures one of the components used to assemble its main company product ...

    instant Enterprises manufactures one of the components used to assemble its main company product Specialty Products, This current cost per unit is based on the folowing callcufations component, based on the 115,000 components that instant Enterprises currently produces. Read the tequirements see current cost is $13.50 per unvt ofthhe icon to view the information) None of Instant Enterprises' fxed costs will be eliminated if the component is outsourced However, the treed capacity couid be used to build a new product...

  • PLEASE ANSWER ONLY # 11, 12, 14 as on the pictures bellow and only the parts that are wrong. Thank you. Genuine Spice In...

    PLEASE ANSWER ONLY # 11, 12, 14 as on the pictures bellow and only the parts that are wrong. Thank you. Genuine Spice Inc. began operations on January 1 of the current year. The company produces eight- ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as...

  • Outsourcing (Make-or-Buy) Decision Mountain Air Limited manufactures a line of room air purifiers. Management is currently...

    Outsourcing (Make-or-Buy) Decision Mountain Air Limited manufactures a line of room air purifiers. Management is currently evaluating the possible production of an air purifier for automobiles. Based on an annual volume of 10,000 units, the predicted cost per unit of an auto air purifier follows. Direct materials $8.00 Direct labor 1.50 Factory overhead 5.00 Total $14.50 These cost predictions include $40,000 in facility-level fixed factory overhead averaged over 10,000 units. One of the component parts of the auto air purifier...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT