Check my work Han Products manufactures 67,500 units of part S6 each year for use on...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Check my work Han Products manufactures 67,500 units of part S6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is as follows: Direct materials Direct labour Variable overhead Fixed overhead $ 7.25 13.25 6.25 11.25 Total cost per part $38.00 An outside supplier has offered to sell 60,000 units of part S-6 each year to Han Products for $33.25 per part if Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $114,000 However, Han Products has determined that 30% of the fixed overhead being applied to part S-6 will be avoided if part S-6 is purchased from the outside supplier. Required: 1. What is the net dollar advantage or disadvantage of accepting the outside supplier's offer? (Round "Total costs" and final answer to the nearest whole dollar amount.) Net dollar disadvantage 73.500 Check my work Han Products manufactures 67,500 units of part S6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is as follows: Direct materials Direct labour Variable overhead Fixed overhead $ 7.25 13.25 6.25 11.25 Total cost per part $38.00 An outside supplier has offered to sell 60,000 units of part S-6 each year to Han Products for $33.25 per part if Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $114,000 However, Han Products has determined that 30% of the fixed overhead being applied to part S-6 will be avoided if part S-6 is purchased from the outside supplier. Required: 1. What is the net dollar advantage or disadvantage of accepting the outside supplier's offer? (Round "Total costs" and final answer to the nearest whole dollar amount.) Net dollar disadvantage 73.500
Expert Answer:
Answer rating: 100% (QA)
Answers Solution Net dollar disadvantage 48187 Explanation Cost to make tota... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Han Products manufactures 30,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials . . . . . . . . . . . . . ....
-
The cost per unit of producing a product is 60 + 0.2x dollars, where x represents the number of units produced per week. If the equilibrium price determined by a competitive market is $220, how many...
-
The cost per unit in the production of an MP3 player is $60. The manufacturer charges $90 per unit for orders of 100 or less. To encourage large orders, the manufacturer reduces the charge by $0.15...
-
A chemical is spilled into a lake of pure water and the concentration of chemicals in this lake is 4 If 20 of the water in the lake is replaced with clean in one month then. What will be the...
-
Jamison Woodworking uses normal costing and allocates manufacturing overhead to jobs based on a budgeted labor-hour rate and actual direct labor-hours. Under-or overallocated overhead, if immaterial,...
-
If all national markets have market risk, is all market risk the same?
-
Presented below are selected financial data from The Boeing Company 2015 annual report. Using the ratio definitions from Exhibit 4.6, calculate the following ratios: receivable turnover, receivable...
-
Equity Lighting Corp. wishes to explore the effect on its cost of capital of the rate at which the company pays taxes. The firm wishes to maintain a capital structure of 30% debt, 10% preferred...
-
Valmont Company developed a new industrial piece of equipment called the XP-200. The company is considering two methods of establishing a selling price for the XP-200-absorption cost-plus pricing and...
-
Summers and Dooley are partners in a small business, "Summers & Dooley Co." The two partners disagree about whether or not to expand the business; Dooley wants to expand and is willing to take the...
-
You have been asked to oversee the management of risk for your team or department at work, where an expansion process is currently being considered. If you do not have an example you can draw upon,...
-
Discuss how do organizational policies and practices related to emotions and moods, such as emotional intelligence training or policies on expressing emotions in the workplace, impact employee well -...
-
Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit Sales Variable expenses Contribution margin Fixed expenses $ 450,000 $ 30 180,000 12...
-
Worldwide Scientific Equipment is considering a cash acquisition of Medical Labs for $1.7 million. Medical Labs will provide the following pattern of cash inflows and synergistic benefits for the...
-
In what ways do multifunctional teams serve as catalysts for organizational agility and resilience by leveraging the collective intelligence of diverse skill sets to swiftly respond to dynamic market...
-
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities March 1 March 5 March 9 Beginning inventory Purchase...
-
Light emitting diode(LED) light bulbs have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $.48 and lasts for 1,000 hours. A...
-
In the current year, the City of Omaha donates land worth $500,000 to Ace Corporation to induce it to locate in Omaha and create an estimated 2,000 jobs for its citizens. a. How much income, if any,...
-
Find the area of the triangle. Round your answers to one decimal place. 1. A = 33, b = 7, c = 10 2. B = 80, a = 4, c = 8 3. C = 119, a = 18, b = 6 4. A = 11, b = 22, c = 21
-
Two planes leave simultaneously from Chicago's O'Hare Airport, one flying due north and the other due east (see figure). The northbound plane is flying 50 miles per hour faster than the eastbound...
-
Use Cramer's Rule (if possible) to solve the system of equations. 1. 2. 5x 2y = (-11x + 3y = 23 [3 + 8y 3D 7 19 5 %3D 37 9
-
Gordon Company signed a note payable on November 20. Gordon has a December 31 year-end. It paid the note, including interest, on the maturity date, February 20. What accounts did Gordon debit and...
-
On whom is the FICA tax levied? What does the FICA tax finance?
-
What are two examples of voluntary deductions from an employee's gross pay?
Study smarter with the SolutionInn App