Question No. 1. Standard costs and other data for two component types used by Waves electronics...

 

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Question No. 1. Standard costs and other data for two component types used by Waves electronics are presented below: Direct materials A Direct materials B Direct labor Factory overhead Unit standard cost Units needed per year Machine hours per unit Unit cost if purchased Required: Ives 1 Rs. 4.00 2.80 2.50 6.00- Rs. 15.30 8,000 4 Rs. 15.00 Type 2 Rs.7.00 4.00 7.00 Rs.3.00 Rs. 21.00 10,000 2 Rs. 22.00 In past years, Waves electronics has manufactured all of its required components; however, in 2013 only 40,000 hours of otherwise idle machine time can be devoted to the production of components. Accordingly, some of the component types must be purchased from outside suppliers. In producing various types, factory overhead is applied at Rs. 1.50 per standard machine hour. Fixed capacity costs, which will not be affected by any make-or-buy decision, represent 40% of the applied factory overhead. The 40,000 hours of available machine time are to be scheduled, so that Waves realizes maximum potential cost savings. The relevant unit production costs to be considered in the make-or-buy decision to schedule machine time. The units of type 1 and Type 2 that Waves should produce if the allocation of machine time is based on potential cost savings per machine hour. mited has a budgeted Question No. 1. Standard costs and other data for two component types used by Waves electronics are presented below: Direct materials A Direct materials B Direct labor Factory overhead Unit standard cost Units needed per year Machine hours per unit Unit cost if purchased Required: Ives 1 Rs. 4.00 2.80 2.50 6.00- Rs. 15.30 8,000 4 Rs. 15.00 Type 2 Rs.7.00 4.00 7.00 Rs.3.00 Rs. 21.00 10,000 2 Rs. 22.00 In past years, Waves electronics has manufactured all of its required components; however, in 2013 only 40,000 hours of otherwise idle machine time can be devoted to the production of components. Accordingly, some of the component types must be purchased from outside suppliers. In producing various types, factory overhead is applied at Rs. 1.50 per standard machine hour. Fixed capacity costs, which will not be affected by any make-or-buy decision, represent 40% of the applied factory overhead. The 40,000 hours of available machine time are to be scheduled, so that Waves realizes maximum potential cost savings. The relevant unit production costs to be considered in the make-or-buy decision to schedule machine time. The units of type 1 and Type 2 that Waves should produce if the allocation of machine time is based on potential cost savings per machine hour. mited has a budgeted

Answer rating: 100% (QA)

Type 1 Direct materials A 400800032000 Direct materials B 280800022400 Direct labor 250800020... View the full answer