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M6 P Search for tools, help, and more (Option + ( File Home Insert Share Page Layout Formulas Data Review View Automate Help Draw V Calibri (Body) v 11 V B A *** Accounting $ 10 .00 .00 -0 G37 A Outsourcing 4567 XV fx B C D E F G H Comments Catch up Editing J K L M N Dough, Re, Mi Inc. sells many different types of cookie dough. The company is deciding whether to continue making its own dough or to outsource. If the company outsources, they will eliminate all of the variable overhead and 30% of the fixed manufacturing overhead, but will incur shipping costs. Use the information below to determine whether Dough, Re, Mi Inc. should outsource or not. 7 8 9 10 Data 11 Sales price per unit 12 Direct materials per unit 13 Direct labor per unit 14 Variable manufacturing overhead per unit 15 Fixed manufacturing overhead (MOH): per month 16 Avoidable fixed MOH per month 17 Unavoidable fixed MOH per month 18 Sales commissions per unit 19 Advertising costs per month 20 Purchase price of outsourced product per unit 21 Shipping costs of outsourced product per unit 22 23 24 25 26 Variable costs 27 28 Direct labor 29 30 Incremental analysis Direct materials Variable manufacturing overhead Purchase price 31 Shipping costs 32 Sales commissions 33 Total variable costs 34 Fixed costs < > = Instructions M6 Project + Units Per unit Relevant? 4,850 $ 114.00 No 25.00 Yes 18.00 Yes 14.00 No 29.00 8.70 Yes n/a 20.30 Yes n/a 3.00 No 1.80 No 59.00 Yes 1.00 Yes Cell Formulas Costs per unit Manufacture Outsource Manufacture Enter "=0" in the cell for any cost not relevant to the decision. $ 25.00 18.00 14.00 n/a =0 n/a =0 n/a =0 59.00 n/a n/a 1.00 =0 n/a 3.00 3.00 n/a n/a 60.00 63.00 n/a n/a Outsource M6 P Search for tools, help, and more (Option + ( File Home Insert Share Page Layout Formulas Data Review View Automate Help Draw V Calibri (Body) v 11 V B A *** Accounting $ 10 .00 .00 -0 G37 A Outsourcing 4567 XV fx B C D E F G H Comments Catch up Editing J K L M N Dough, Re, Mi Inc. sells many different types of cookie dough. The company is deciding whether to continue making its own dough or to outsource. If the company outsources, they will eliminate all of the variable overhead and 30% of the fixed manufacturing overhead, but will incur shipping costs. Use the information below to determine whether Dough, Re, Mi Inc. should outsource or not. 7 8 9 10 Data 11 Sales price per unit 12 Direct materials per unit 13 Direct labor per unit 14 Variable manufacturing overhead per unit 15 Fixed manufacturing overhead (MOH): per month 16 Avoidable fixed MOH per month 17 Unavoidable fixed MOH per month 18 Sales commissions per unit 19 Advertising costs per month 20 Purchase price of outsourced product per unit 21 Shipping costs of outsourced product per unit 22 23 24 25 26 Variable costs 27 28 Direct labor 29 30 Incremental analysis Direct materials Variable manufacturing overhead Purchase price 31 Shipping costs 32 Sales commissions 33 Total variable costs 34 Fixed costs < > = Instructions M6 Project + Units Per unit Relevant? 4,850 $ 114.00 No 25.00 Yes 18.00 Yes 14.00 No 29.00 8.70 Yes n/a 20.30 Yes n/a 3.00 No 1.80 No 59.00 Yes 1.00 Yes Cell Formulas Costs per unit Manufacture Outsource Manufacture Enter "=0" in the cell for any cost not relevant to the decision. $ 25.00 18.00 14.00 n/a =0 n/a =0 n/a =0 59.00 n/a n/a 1.00 =0 n/a 3.00 3.00 n/a n/a 60.00 63.00 n/a n/a Outsource
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Related Book For
Fundamentals of Financial Accounting
ISBN: 978-1259103292
4th Canadian edition
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
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