Question: help Current Attempt in Progress Pottery Ranch Inc. has been manufacturing its own finais for its curtain rods. The company is currently operating at 100%

Current Attempt in Progress Pottery Ranch Inc. has been manufacturing its own finais for its curtain rods. The company is currently operating at 100% of capacity and variable manufacturing overhead is charged to production at the rate of 57% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finals are $4 and $5, respectively. Normal production is 25500 curtain rods per year. A supplier offers to make a pair of finials at a price of $13.25 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $46,400 of found manufacturing overhead currently being charged to the finals will have to be absorbed by other products Prepare the incremental analysis for the decision to make or buy the finiats. (Enter negative amounts using either a nenotive sign preceding the number es 45 or parentheses (453) Make Direct materials Buy Net Income Increase (Decrease 99333 99333 Direct labor 133859 133559 54331 Variable overhead costs Feed manufacturing costs Purchase price 200 Total 373500 $ 10 5 5803 Should Pottery Rarch by the finis? Pottery Ranch should 80 099 Dll # De $ 2 % 3 4 5 6 & 7 8 C 9 W E R T (b) Should Pottery Ranch buy the finials? Yes Pottery Ranch should the finals le) Would your answer be different in (b) if the productive capacity released by not making the finals could be used to produce income of $41.7002 income would by s eTextbook and Media Last saved minute Save work withoutmited on the due date Attempts: 0 of 3 used Submit
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