Orange Company produces computers and is trying to determine if it should make or buy its...

 

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Orange Company produces computers and is trying to determine if it should make or buy its central processing unit (CPU). A vendor currently supplies the CPUs at a price of $190 per unit + $1 for shipping. The unit costs incurred to manufacture the component are as follows. Direct materials $60 Direct labor $30 Overhead Total $110 $200 Of the overheads costs, 70% are variable and 30% are fixed. Of the fixed overhead, $5 is related to a new team of managers that would need to be hired to manage the CPU processing line. This cost would not exist if the company continued to buy the CPUs. How much would it cost to make or buy the CPUs? s. If there is no amount, then just put 0 in that blank. All blanks need to be filled in. Just include #'s in your box, no $. Item Direct Materials Direct Labor Overhead Purchase Price Total Unit Cost Make Buy Should the company make or buy the CPUs? (Type: Make or Type: Buy) Orange Company produces computers and is trying to determine if it should make or buy its central processing unit (CPU). A vendor currently supplies the CPUs at a price of $190 per unit + $1 for shipping. The unit costs incurred to manufacture the component are as follows. Direct materials $60 Direct labor $30 Overhead Total $110 $200 Of the overheads costs, 70% are variable and 30% are fixed. Of the fixed overhead, $5 is related to a new team of managers that would need to be hired to manage the CPU processing line. This cost would not exist if the company continued to buy the CPUs. How much would it cost to make or buy the CPUs? s. If there is no amount, then just put 0 in that blank. All blanks need to be filled in. Just include #'s in your box, no $. Item Direct Materials Direct Labor Overhead Purchase Price Total Unit Cost Make Buy Should the company make or buy the CPUs? (Type: Make or Type: Buy)

Answer rating: 100% (QA)

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