MAKE OR BUY DECISION: Comet Company is now producing a small part that is used in...

  

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MAKE OR BUY DECISION: Comet Company is now producing a small part that is used in the production of one of its product lines. The company's accounting department reports the following costs of producing the part internally: Per Part Direct Material P 15 Direct Labor 10 Variable Overhead Fixed Overhead, direct" 4 Fixed Overhead Total Cost P 36 *Note: The direct fixed overhead costs consist of 75% depreciation of special equipment and 25% supervisory solaries. The special equipment has no resale value. Question 5 1 pts How much is the depreciation cost per part (in peso value)? 3 Question 6 1 pts How should the depreciation cost be considered? O Relevant Cost O Imrelevant Cost Question 7 1 pts What is the actual total cost per part (in peso value) if the company continues to make these parts internally? 31 Question 8 1 pts If an outside supplier has offered to sell the parts to Comet Company, how much fixed cost per part (in peso value) will remain if the company decides to accept the outside supplier's offer to buy the same parts from them instead? 4 Question 9 1 pts If the outside supplier offers to sell the parts to Comet Company for P 30.62 each based on an order of 5,000 parts per year. How much will the total cost per part (in peso value) be if the company decides to accept the outside supplier's offer to buy the same parts from them instead? (The answer you'll input should have 2 decimal places, so do not round off. Question 10 1 pts Should Comet y continue make parts internally, or cept the outside supplier's offer to buy from them instead? O Continue to make the parts intemally. O Buy the parts from the outside supplier instead. MAKE OR BUY DECISION: Comet Company is now producing a small part that is used in the production of one of its product lines. The company's accounting department reports the following costs of producing the part internally: Per Part Direct Material P 15 Direct Labor 10 Variable Overhead Fixed Overhead, direct" 4 Fixed Overhead Total Cost P 36 *Note: The direct fixed overhead costs consist of 75% depreciation of special equipment and 25% supervisory solaries. The special equipment has no resale value. Question 5 1 pts How much is the depreciation cost per part (in peso value)? 3 Question 6 1 pts How should the depreciation cost be considered? O Relevant Cost O Imrelevant Cost Question 7 1 pts What is the actual total cost per part (in peso value) if the company continues to make these parts internally? 31 Question 8 1 pts If an outside supplier has offered to sell the parts to Comet Company, how much fixed cost per part (in peso value) will remain if the company decides to accept the outside supplier's offer to buy the same parts from them instead? 4 Question 9 1 pts If the outside supplier offers to sell the parts to Comet Company for P 30.62 each based on an order of 5,000 parts per year. How much will the total cost per part (in peso value) be if the company decides to accept the outside supplier's offer to buy the same parts from them instead? (The answer you'll input should have 2 decimal places, so do not round off. Question 10 1 pts Should Comet y continue make parts internally, or cept the outside supplier's offer to buy from them instead? O Continue to make the parts intemally. O Buy the parts from the outside supplier instead.