Question: Question 26 (4 points) Ch. 12 - Part OSE9 is used by Dannon Inc to make one of its products. A total of 18,500 units

Question 26 (4 points) Ch. 12 - Part OSE9 is used by Dannon Inc to make one of its products. A total of 18,500 units of this part are produced and used every year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Per Unit $ 4.00 $8.50 $9.10 $450 $ 200 $ 2.10 Direct materials Direct labor Variable manufacturing overhead Supervisor's salary Depreciation of special equipment Allocated general overhead An outside supplier has offered to make the part and sell it to the company for $29.10 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct Jabor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. The annual financial advantage (disadvantage) for the company as a result of buying part OSE9 from the outside supplier should be: antage disadvantage for the company as a result of buying part OSE9 from the outside supplier should be: $199950 S(62,350) S(53,650) ($172,000) )
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