Question: Moving to another question will save this response Question 13 QA3 You are given the following cost information for producing 10,000 units in LL company:

 Moving to another question will save this response Question 13 QA3
You are given the following cost information for producing 10,000 units in

Moving to another question will save this response Question 13 QA3 You are given the following cost information for producing 10,000 units in LL company: direct material - $70,000, direct labour - $10,000, variable manufacturi manufacturing overhead for the year - $300,000. LL company received an offer from a supplier to manufacture the 10,000 units for $39, for the same quality. LL company can use the capacity released to make $4,000 extra net income from it. 60% of the fixed manufacturing overhead cost is avoidable if LL buys from a suppler. In case LL company decides to buy from a supplier, and use the capacity in making another product, then it will make $. .. cost savings total relevant costs of making and that of buying). Moving to another question will save this response save this response >> 5 points Save Answer information for producing 10,000 units in LL company: direct material - $70,000, direct labour - $10,000, variable manufacturing overhead - $50,000. Foced Year - $300,000 om a supplier to manufacture the 10,000 units for $19, for the same quality. LL company can use the capacity released to make another product and generate 60% of the forced manufacturing overhead cost is avoidable if LL buys from a supplier to buy from a supplier, and use the capacity in making another product, then it will make ................ cost savings (ie the difference between g and that of buying). ill save this response >>

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