The managerial accountant at Sellers Manufacturing produces a product, Part Z that the company uses to...

  

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The managerial accountant at Sellers Manufacturing produces a product, Part Z that the company uses to make multiple products at its facility in Virginia. The managerial accountant reported to the operations manager that 12% of its fixed overhead costs assigned to Part Z will not continue if Sellers Manufacturing outsources the production of Product Z at $44 per unit to Manufacturing World. The managerial accountant reported that to produce 1,200 units of Product Z, Sellers Manufacturing incurs the following costs: Direct Materials Direct Labor Variable overhead costs Fixed overhead costs Sellers Manufacturing Monthly Analysis: Part Z $28,000 $6,400 $18,000 $11,500 Should Sellers Manufacturing Produce Part Z or outsource it to Manufacturing World (show workings)? (5 marks) The managerial accountant at Sellers Manufacturing produces a product, Part Z that the company uses to make multiple products at its facility in Virginia. The managerial accountant reported to the operations manager that 12% of its fixed overhead costs assigned to Part Z will not continue if Sellers Manufacturing outsources the production of Product Z at $44 per unit to Manufacturing World. The managerial accountant reported that to produce 1,200 units of Product Z, Sellers Manufacturing incurs the following costs: Direct Materials Direct Labor Variable overhead costs Fixed overhead costs Sellers Manufacturing Monthly Analysis: Part Z $28,000 $6,400 $18,000 $11,500 Should Sellers Manufacturing Produce Part Z or outsource it to Manufacturing World (show workings)? (5 marks)

Answer rating: 100% (QA)

total cost to purchase 1200 units purchase price number of units 1200 units 44 52... View the full answer