McMurphy Corporation produces a part that is used in the manufacture of one of ts products...
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McMurphy Corporation produces a part that is used in the manufacture of one of ts products The custs associated with the production of 13,000 units of this part are as follows Direct materials Direct labor Variable factory overhe ad Fixed factory overhead $85,000 125,000 60,000 135,000 $405.000 Total costs Of the fixed factory overhead costs, $59,000 is avoidable. Conners Company has ffered to el 1300 uni of the same part to McMurphy Corporation for $36 per unit. Assuming there is no other use for the facilities, Schmidt should: O make the part, as this would save $14 per unit O make the part, as this would save $11 per unit O buy the part, as this would save the company $182,000 O buy the part, as this would save $14 per unit McMurphy Corporation produces a part that is used in the manufacture of one of ts products The custs associated with the production of 13,000 units of this part are as follows Direct materials Direct labor Variable factory overhe ad Fixed factory overhead $85,000 125,000 60,000 135,000 $405.000 Total costs Of the fixed factory overhead costs, $59,000 is avoidable. Conners Company has ffered to el 1300 uni of the same part to McMurphy Corporation for $36 per unit. Assuming there is no other use for the facilities, Schmidt should: O make the part, as this would save $14 per unit O make the part, as this would save $11 per unit O buy the part, as this would save the company $182,000 O buy the part, as this would save $14 per unit
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Direct Material 85000 Direct Labour 125000 Variable Factory Overhead 60000 Fixed factory Overh... View the full answer
Related Book For
Managing Supply Chain and Operations An Integrative Approach
ISBN: 978-0132832403
1st edition
Authors: Thomas Foster, Scott E. Sampson, Cynthia Wallin, Scott W Webb
Posted Date:
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