Question: Your answer is partially correct. Try again. Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating

 Your answer is partially correct. Try again. Pottery Ranch Inc. has
been manufacturing its own finials for its curtain rods. The company is

Your answer is partially correct. Try again. Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity and variable manufacturing overhead is charges to production at the rate of 66% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finals are $3.78 and $4.96, respectively. Normal productions 34,300 curtain rods per year. supplier offers to make a pair of finals at a price of $13.05 per unit. Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $45,700 a xed manufacturing overhead currently being charged to the finals will have to be absorbed by other products Prepare an incremental analysis to decide if Pottery Ranch should buy the finals (Round answers to negative sign preceding the number -5 or parentheses (45) decimal places 1,225. Enter negative amounts using either Net Income Direct materials Direct labor Variable overhead costs Fixed manufacturing costs DEO Purchase price BE ase (Decrease) Direct materials Direct labor Variable overhead costs OPE DEP Fixed manufacturing costs Purchase price Total annual cost (b) Should Pottery Ranch buy the finals? NO .Pottery Ranch should not buy the finials. (c) Would your answer be different in (b) if the productive capacity released by not making the finals could be used to produce income of $44,049? Yes income would Lunch

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