1) Pharoah Company must decide wether to make or buy some of its components... Please answer B...
Fantastic news! We've Found the answer you've been seeking!
Question:
1) Pharoah Company must decide wether to make or buy some of its components...
Please answer B :)
Transcribed Image Text:
Pharoah Company must decide whether to make or buy some of its components. The costs of producing 60,500 switches for its generators are as follows. Direct materials $29,600 Variable overhead $44,400 Direct labor $21,480 Fixed overhead $83,600 Instead of making the switches at an average cost of $2.96 ($179,080 + 60,500), the company has an opportunity to buy the switches at $2.70 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. (a) Your answer has been saved. See score details after the due date. Prepare an incremental analysis showing whether the company should make or buy the switches. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses e.g. (45).) Direct materials Make Buy 29.600 $ Direct labor 21.480 Variable manufacturing 44,400 costs Fixed manufacturing 83,600 costs Purchase price Total cost 0 Net Income Increase (Decrease) 0 29,600 0 21,470 10 44400 62,700 163,350 20,900 -163,350 $ 179,080 $ 226,050 $ -46,980 Pharoah Company will incur $ 46.980 of additional costs if it buys the switches. Pharoah Company must decide whether to make or buy some of its components. The costs of producing 60,500 switches for its generators are as follows. Direct materials $29,600 Variable overhead $44,400 Direct labor $21,480 Fixed overhead $83,600 Instead of making the switches at an average cost of $2.96 ($179,080 + 60,500), the company has an opportunity to buy the switches at $2.70 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. (a) Your answer has been saved. See score details after the due date. Prepare an incremental analysis showing whether the company should make or buy the switches. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses e.g. (45).) Direct materials Make Buy 29.600 $ Direct labor 21.480 Variable manufacturing 44,400 costs Fixed manufacturing 83,600 costs Purchase price Total cost 0 Net Income Increase (Decrease) 0 29,600 0 21,470 10 44400 62,700 163,350 20,900 -163,350 $ 179,080 $ 226,050 $ -46,980 Pharoah Company will incur $ 46.980 of additional costs if it buys the switches.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Use (4.1), for a perfectly conducting fluid, and the nonlinear equation of continuity (1.1), to show that the change of B with time in a fluid element is related to changes of density according to...
-
What are the three most important elements of service for each of the following products? a. Cowboy boots b. Television c. Meal in a fine restaurant d. Student study guide for managerial accounting...
-
McDonald Marina provides docking and cleaning services for pleasure boats at its marina in southern Florida. The following account balances are available: Required: 1. Prepare a single-step income...
-
Wilmot Real Estate Company experienced the following events during its first year of operations: 1. Received \($50,000\) in cash from investors as an equity investment. 2. Borrowed \($40,000\) in...
-
a. Suppose the discount rate in Problem 13a changes to 13 percent (.13). Perform present value analysis using the new discount rate. b. What is your recommendation to Alamo Foods now? c. Explain the...
-
The z - score associated with a probability of 0 . 9 5 is approximately 1 . 9 6 . how ?
-
The no-load voltage in the voltage-divider circuit shown in the figure is 8 V . The smallest load resistor that is ever connected to the divider is 3.5 k? When the divider is loaded, v o is not to...
-
Do you agree with the following? Conclude "yes" or "no" and explain why. In your explanation, be sure to provide the rule and apply the law to the facts. The issue is whether Terry was denied his...
-
Calvin, a resident of South Park, Colorado, creates a website called But Seriously , which acts as an electronic billboard for posting funny stories. Ted, a resident of Northridge, California, posts...
-
Read the scenario below and then respond to the questions that follow. You leave your computer to go to lunch. As you step away from the computer, your coworker Jeremy, gets on the same computer....
-
'A UK court can never refuse to give full legal effect to an Act of Parliament.' Critically discuss. The Human Rights Act of 1998 and the Constitutional Reform Act 2005 were the final pieces of the...
-
In 2012, Joan Silva, a registered nurse, and her sister Janet Donaldson, a pharmacist, formed MedExpress, Inc. to package and deliver medications for patients in Atlantis area nursing homes,...
-
If I have a total average grade class of 75.21% and I take a test and get 14 points out of 15, (tests are worth 80% of my final grade percentage) what would be my new grade?
-
Complete problem P10-21 using ASPE. Data from P10-21 Original cost ................................................................. $7,000,000 Accumulated depreciation...
-
Describe and explain how binding price ceilings create shortages and binding price floors create surpluses.
-
A demand curve or a portion of a demand curve can be relatively _________, _________, or relatively _________.
-
If the price elasticity of demand is elastic, it means the quantity demanded changes by a relatively _________ amount than the price change.
Study smarter with the SolutionInn App