Question

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 Answer Click or tap here to enter text. Or, you can use the given excel document to show your work for this question Part 11 The management at Han Products is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier Han Products manufactures 30,000 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part 5-6 is Direct materials $3.60 Direct labour 10.00 Variable manufacturing overhead 2.40 Fbed manufacturing overhead 9.00 Total cost per part 25.00 An outside supplier has offered to sell 30.000 units of part 5-6 each year to Han Products for $21 per part. If Han Products accepts this offer, the facilities now being used to manufacture part 5-6 could be rented to another company at an annual rental of $80.000. However. Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part 5-6 were purchased from the outside supplier Required (a) Make a recommendation on whether S-6 should be manufactured or purchased. Support your answer with appropriate incremental analysis. (8 marks) Suggested Answer Click or tap here to enter text Or you can use the given excel document to show your work for this question b) What non-financial factors should management consider in making this decision? (4 marks)

do part B only