Question: I need help with the remaining answers please! A Week 3 - CNOW Assignment X CengageNOWv2 | Online teachir x ? Keep or Replace Machine:
I need help with the remaining answers please!
A Week 3 - CNOW Assignment X CengageNOWv2 | Online teachir x ? Keep or Replace Machine: Skiles x + ow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false ES Zee-Drive Ltd. is a computer manufacturer. One of the items they make is monitors. Zee-Drive has the opportunity to purchase 17,000 monitors from an outside supplier for $193 per unit. One of the company's cost-accounting interns prepared the following schedule of Zee-Drive's cost to produce 17,000 monitors: Total cost of producing 17,000 monitors Unit cost Direct materials $ 1,904,000 $ 112 Direct labor 1,190,000 70 Variable factory overhead 476,000 28 Fixed manufacturing overhead 493,000 29 Fixed non-manufacturing overhead 731,000 43 $ 4,794,000 $ 282 You are asked to look over the intern's estimate before the information is shared with members of management who will decide to continue to make the monitors or buy them. The company's controller believes that the estimate may be incorrect because it includes costs that are not relevant. If Zee-Drive buys the monitors, the direct labor force currently employed in producing the monitors will be terminated and there would be no termination costs incurred. There are no materials on hand and no commitments to suppliers to purchase materials, so all materials would need to be purchased to make the monitors. Variable overheads are avoidable if monitors are bought. Fixed manufacturing overhead costs would be reduced by $51,900, but non-manufacturing costs would remain the same if monitors are bought. Fill in the differential analysis. Make or Buy Decisions Differential Analysis Report Purchase price of 17,000 monitors $ 3,281,000 Differential cost to make: 1 and non Check My Work Previous All work saved. Email Instructor Save and Exit Submit Assignment for Grading 71.F Cloudy ~ calls 10:46 AMversit X A Week 3 - CNOW Assignment x CengageNOWv2 | Online teachin x ) Keep or Replace Machine: Skiles X + V cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false ment OVER $ 4,794,000 $ 282 NG You are asked to look over the intern's estimate before the information is shared with members of management who will decide to continue to make the monitors or buy them. The company's controller believes that the estimate may be incorrect because it includes costs that are not relevant. If Zee-Drive buys the monitors, the direct labor force currently JALY... employed in producing the monitors will be terminated and there would be no termination costs incurred. There are no materials on hand and no commitments to suppliers to purchase materials, so all materials would need to be purchased to make the monitors. Variable overheads are avoidable if monitors are bought. Fixed manufacturing overhead costs would be reduced by $51,900, but non-manufacturing costs would remain the same if monitors are bought. Fill in the differential analysis. Make or Buy Decisions Differential Analysis Report Purchase price of 17,000 monitors 3,281,000 Differential cost to make: Direct materials 1,904,000 Direct labor 1,190,000 Overhead 527,900 Differential income (loss) from making monitors Feedback Check My Work Enter only the differential relevant costs in the appropriate space and calculate differential income or loss. The challenge is in determining differential overhead. Keep or Replace Machine: Previous Check My Work All work saved. Email Instructor Save and Exit Submit Assignment for Grading 7% 10:46 AM to search O 99+ T 71.F Cloudy 9/20/2021