Amman company produces fax machines, and intervention in the manufacturing process piece Spare Parts X .The...
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Amman company produces fax machines, and intervention in the manufacturing process piece Spare Parts X .The company needs to 100000 pieces or units annually. The company can buy a piece of the necessary parts from an outside supplier at 9 JD per piece, and will be the cost of transportation JD 1 per piece, as the company can manufacture the piece internally. The following are the estimated costs for the process of manufacturing the required quantity is 100000 pieces: Total costs JD The cost of per piece JD 400000 200000 200000 350000 1150000 2 2 3.5 11.5 Direct Material Direct labor Statement Industrial variable indirect Industrial fixed costs Total Required: Identify suitable alternative: Decision internal manufacturing or purchasing decision and in accordance with the following cases: 1. Exclude the entire industrial fixed costs. 2. Exclude half of Industrial fixed costs. 3. Exclude 20% of the Industrial fixed costs. 4. Exclude direct labor. Amman company produces fax machines, and intervention in the manufacturing process piece Spare Parts X .The company needs to 100000 pieces or units annually. The company can buy a piece of the necessary parts from an outside supplier at 9 JD per piece, and will be the cost of transportation JD 1 per piece, as the company can manufacture the piece internally. The following are the estimated costs for the process of manufacturing the required quantity is 100000 pieces: Total costs JD The cost of per piece JD 400000 200000 200000 350000 1150000 2 2 3.5 11.5 Direct Material Direct labor Statement Industrial variable indirect Industrial fixed costs Total Required: Identify suitable alternative: Decision internal manufacturing or purchasing decision and in accordance with the following cases: 1. Exclude the entire industrial fixed costs. 2. Exclude half of Industrial fixed costs. 3. Exclude 20% of the Industrial fixed costs. 4. Exclude direct labor.
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Business Law and the Legal Environment
ISBN: 978-1133587491
5th edition
Authors: Jeffrey F. Beatty, Susan S. Samuelson
Posted Date:
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