Crane Furniture currently manufactures rocking chairs as its main product. Each chair uses one seat cushion...
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Crane Furniture currently manufactures rocking chairs as its main product. Each chair uses one seat cushion and one back cushion with the following costs per set of cushions (one seat and one back): Direct materials $4 Direct labor 13 Variable overhead 8. Fixed overhead 11 Total $36 Shepert Company has contacted Crane with an offer to sell it 6,300 sets of cushions for $30 each. If Crane buys the cushions, $5 of the fixed overhead per unit will be allocated to other products. Should Crane make or buy the cushions? Crane should buy v to save $ 6300 per set. Crane Furniture currently manufactures rocking chairs as its main product. Each chair uses one seat cushion and one back cushion with the following costs per set of cushions (one seat and one back): Direct materials $4 Direct labor 13 Variable overhead 8. Fixed overhead 11 Total $36 Shepert Company has contacted Crane with an offer to sell it 6,300 sets of cushions for $30 each. If Crane buys the cushions, $5 of the fixed overhead per unit will be allocated to other products. Should Crane make or buy the cushions? Crane should buy v to save $ 6300 per set.
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crane should buy to save 1 per set EXPLANATION DIFFERENCIAL ANALYSIS BUY direct materia... View the full answer
Related Book For
Managerial Accounting An Introduction to Concepts Methods and Uses
ISBN: 978-0324639766
10th Edition
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
Posted Date:
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