Homework Answers
Correct answer-----------Make
Working
| Differential Analysis | ||
| Make | Buy | |
| Direct material | $ 105,000.00 | |
| Direct labor | $ 130,000.00 | |
| Variable Overheads | $ 50,000.00 | |
| Avoidable Fixed overhead | $ 70,000.00 | $ 30,000.00 |
| Purchase price | $ 345,000.00 | |
| Total relevant Cost | $ 355,000 | $ 375,000 |
.
| Total Cost of Buying | $ 375,000.00 |
| Total Cost of manufacturing | $ 355,000.00 |
| Financial advantage of making | $ 20,000.00 |
Cost of buying is more than cost of making so its better to make goods .
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Gilberto is considering buying the part from a supplier for a
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Gilberto is considering buying the part from a supplier for a
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Calculate the total incremental cost of...
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