Fragrant Company produces young adult perfumes needs to determine if it would be cheaper to produce...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Fragrant Company produces young adult perfumes needs to determine if it would be cheaper to produce 100,000 bottles of its most popular perfume, Timmee, for sale in its college town shops or to purchase them from an outside supplier for RM25 each. Cost information on internal production includes the following: (Syarikat Fragrant menghasilkan minyak wangi dewasa muda perlu menentukan jika ia akan menjadi lebih murah menghasilkan 100,000 botol minyak wangi mereka yang paling terkenal, Timmee, untuk dijual di kedai-kedai bandar kolejnya atau membelinya daripada pembekal luar untuk RM25 setiap satu. Maklumat kos pengeluaran dalaman termasuk yang berikut:] Table 6: Production Costs [Jadual 6: Kos-kos Pengeluaran] Total Cost Unit Cost RM RM Direct materials 2,000,000 20.00 Direct labor Variable manufacturing overhead Variable marketing overhead Fixed plant overhead 350,000 3.50 150,000 1.50 250,000 2.50 300,000 3.00 Total 3,050,000 30.50 Fixed overhead will continue whether Timmee is produced internally or externally. No additional costs of purchasing will be incurred beyond the purchase price. (Overhed tetap akan berterusan sama ada Timmee dihasilkan secara dalaman atau luaran. Tiada kos- kos tambahan pembeliaan yang akan ditanggung melebihi harga belian.] Required: [Dikehendaki:] (i) List the alternatives for Fragrant Company. (Senaraikan alternatif untuk Syarikat Fragrant.) (1 Marks/ Markah) (ii) List the relevant costs(s) of internal production and of external purchase. (Senaraikan kos-kos relevan pengeluaran dalaman dan pembelian luaran.] (2 Marks/ Markah) (iii) Propose an alternative that is more cost-effective decision with calculation details. (Cadangkan alternatif yang keputusannya lebih kos efektif dengan perincian pengiraan. ] (5 Marks/ Markah) Fragrant Company produces young adult perfumes needs to determine if it would be cheaper to produce 100,000 bottles of its most popular perfume, Timmee, for sale in its college town shops or to purchase them from an outside supplier for RM25 each. Cost information on internal production includes the following: (Syarikat Fragrant menghasilkan minyak wangi dewasa muda perlu menentukan jika ia akan menjadi lebih murah menghasilkan 100,000 botol minyak wangi mereka yang paling terkenal, Timmee, untuk dijual di kedai-kedai bandar kolejnya atau membelinya daripada pembekal luar untuk RM25 setiap satu. Maklumat kos pengeluaran dalaman termasuk yang berikut:] Table 6: Production Costs [Jadual 6: Kos-kos Pengeluaran] Total Cost Unit Cost RM RM Direct materials 2,000,000 20.00 Direct labor Variable manufacturing overhead Variable marketing overhead Fixed plant overhead 350,000 3.50 150,000 1.50 250,000 2.50 300,000 3.00 Total 3,050,000 30.50 Fixed overhead will continue whether Timmee is produced internally or externally. No additional costs of purchasing will be incurred beyond the purchase price. (Overhed tetap akan berterusan sama ada Timmee dihasilkan secara dalaman atau luaran. Tiada kos- kos tambahan pembeliaan yang akan ditanggung melebihi harga belian.] Required: [Dikehendaki:] (i) List the alternatives for Fragrant Company. (Senaraikan alternatif untuk Syarikat Fragrant.) (1 Marks/ Markah) (ii) List the relevant costs(s) of internal production and of external purchase. (Senaraikan kos-kos relevan pengeluaran dalaman dan pembelian luaran.] (2 Marks/ Markah) (iii) Propose an alternative that is more cost-effective decision with calculation details. (Cadangkan alternatif yang keputusannya lebih kos efektif dengan perincian pengiraan. ] (5 Marks/ Markah)
Expert Answer:
Answer rating: 100% (QA)
1 In this case the corporate has two alternatives either ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The company already completed an analysis to determine if it was in its best interest to have Division C purchase 2 comma 000 units from an external supplier assuming that there are no alternative...
-
If it would be cheaper to give each steelworker $375,000 per year in cash than impose restrictions on imports of steel, why do we have the import restrictions rather than the cash payments?
-
Apple is thinking of expanding sales of its most popular Macintosh model by 65%. Do you expect its variable and fixed costs for this model to stay within the relevant range? Explain.
-
After reviewing fractal dimension in class this week, I want to revisit it with a couple of computational examples. The deletion fractal below (sometimes called a Sierpinksi hexagon) is constructed...
-
Glass Doors Inc. (GDI) is preparing the stockholders equity section of their balance sheet. The following items occurred during the year. Which one of the following will not directly impact the...
-
What is a Web server, and what role does it play in the World Wide Web?
-
If a mass on a spring moving horizontally were taken to the moon, how would its frequency change? What about a mass on a spring moving vertically? A pendulum?
-
On June 10, Purcey Company purchased $9,000 of merchandise from Guyer Company, terms 3/10, n/30. Purcey pays the freight costs of $400 on June 11. Goods totaling $600 are returned to Guyer for credit...
-
Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost Per Unit Direct...
-
1. Prepare a table-based ABC analysis of usage value. Classify as follows: A-items: top 20% of usage value B-items: next 30% of usage value C-items: remaining 50% of usage value 2. Calculate the...
-
Please answer all of the following questions. Do NOT use graphing, programmable calculators or cell phones when solving examination problems. PVIF(A) factors are worth 75% of the assigned points. All...
-
What types of tax issues lend themselves to an interview or office examination?
-
Give illustrations of the application of the "entity" and the "aggregate" theories as applied to the treatment of partnerships.
-
What are the major requirements of qualified employer-sponsored plans?
-
Describe the organization of the Internal Revenue Service.
-
Identify three items of nontaxable receipts which nevertheless increase earnings and profits.
-
A channel which has two points A and B. A-to-B data link layer communications channel has a bit rate of 4Kbps, A-to-B propogation delay 20 msec, B-to-A delay the same, frame size 160 bits and...
-
The unadjusted trial balance of Secretarial Services is as follows: SECRETARIAL SERVICES Unadjusted Trial Balance as at 31 December 2017 Account Debit Credit Cash at bank Office supplies Prepaid...
-
Match the ratio to the building block of financial statement analysis to which it best relates. A. Liquidity and efficiency B. Solvency C. Profitability D. Market prospects 1. _______ Gross margin...
-
The chief executive officer (CEO) of your company recently returned from a luncheon meeting where activity-based costing was presented and discussed. Though her background is not in accounting, she...
-
Helix Company has been approached by a new customer to provide 2,000 units of its regular product at a special price of $6 per unit. The regular selling price of the product is $8 per unit. Helix is...
-
Let \(U\) be a UNIFORm \([0,1]\) random variable and let \(\left\{X_{n}ight\}_{n=1}^{\infty}\) be a sequence of random variables such that \[X_{n}=\delta\left\{U ;\left(0,...
-
Let \(\left\{X_{n}ight\}_{n=1}^{\infty}\) be a sequence of random variables such that \[\lim _{n ightarrow \infty} E\left(\left|X_{n}-cight|ight)=0\] for some \(c \in \mathbb{R}\). Prove that \(X_{n}...
-
Let \(\left\{X_{n}ight\}_{n=1}^{\infty}\) be a sequence of independent random variables where \(X_{n}\) has probability distribution function \[f(x)= \begin{cases}1-n^{-1} & x=0 \\ n^{-1} &...
Study smarter with the SolutionInn App