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ycow [4]
3 years ago
7

MSI is considering outsourcing the production of the handheld control module used with some of its products. The company has rec

eived a bid from Monte Legend Co. (MLC) to produce 14,000 units of the module per year for $18.00 each. The following information pertains to MSI's production of the control modules Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit . $22 MSI has determined that it could eliminate all variable costs if the control modules were produced externally, but none of the fxed overhead is avoidable. At this time, MSI has no specific use in mind for the space that is currently dedicated to the control module production. Required 1. Compute the difference in cost between making and buying the control module fference in Cost
Business
2 answers:
Alik [6]3 years ago
8 0

Answer:

1)

cost of making (14000*22) = 308000

cost of buying (14000*(18+6)) = 336000

Difference cost = 28000

2)

No, Since, there is not other use of fixed cost, therefore, fixed cost will be a part of cost of buying.

3-a)

cost of making (14000*22) = 308000

cost of buying (14000*18) = 252000

3-b)

Yes, Since, there is other use of fixed cost, therefore, fixed cost will not be a part of cost of buying.

borishaifa [10]3 years ago
4 0

Answer:

The answer is 28000

Explanation:

1)as far as the fixed cost is unavoidable If units are purchased from outside Therefore it is irrelevant in decision making

Variable cost of manufacturing (since avoidable ,savings) =8+6+2= 16

Purchase cost :18

Difference in cost :14000[18-16 ]

             = 28000

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Anemone Company produces picture frames. During the year, 200,000 picture frames were produced. Materials and labor standards fo
Vsevolod [243]

Answer:

Labour rate variance

= (Standard rate - Actual rate) x Actual hours worked

= ($12 - $13) x 320,000 hours

= $320,000(U)

The correct answer is C

Explanation:

Labour rate variance is the difference between standard labour rate and actual labour rate multiplied by actual labour hours worked.

7 0
3 years ago
Irene plans to retire on January 1, 2020. She has been preparing to retire by making annual deposits, starting on January 1, 198
worty [1.4K]

Answer:

$16,876

Explanation:

first we have to calculate how much money Irene saved until January 1, 2001:

P = PMT ×   [(1 + r)ⁿ - 1] / r

  • PMT = 2,300
  • r = 8.4%
  • n = 22

P = 2,300 ×   [(1 + 8.4%)²² - 1] / 8.4% = $134,089

if she stops making any more payments, in 19 years those $134,089 will be worth:

FV = PV x (1 + r)ⁿ

  • PV = $134,089
  • r = 8.4%
  • n = 19

FV = 134,089 x (1 + 8.4%)¹⁹ = $620,797

that means she still needs to get $1,350,000 - $620,797 = $729,203

we can use the first formula to determine the payments she will need to make during the next 19 years:

P = PMT ×   [(1 + r)ⁿ - 1] / r

  • P = 729,203
  • r = 8.4%
  • n = 19
  • PMT = ???

PMT = P /  {[(1 + r)ⁿ - 1] / r}

PMT = 729,203 / {[(1 + 8.4%)¹⁹ - 1] / 8.4%} = 729,203 / 43.21 = $16,876

7 0
3 years ago
In the video game console industry, Magnitude was the first firm to introduce a console in the market. However, consumers were u
Vanyuwa [196]

Answer:

B. early followers

Explanation:

Based on the information provided within the question it can be said that in this scenario Mantel and Adventura would be considered early followers. Early Followers or better known as First Followers, refers to the company or companies that enter the market shortly after the first company has already entered into that market. They do this to see the barriers that the first company has already overcome and are able to do it easier.

7 0
3 years ago
Division ABC has $750,000 invested in assets and earned $200,000 in income. Division XYZ has $800,000 invested in assets and ear
Rus_ich [418]

Answer:

Division XYZ has the highest residual income

Explanation:

Residual income is the excess of the controllable profit over the opportunity cost of capital invested.

It is used to appraise and evaluate the performance of separate divisions of the same company where different managers are responsible for each

It is computed as follows:

Residual income = Controllable profit - (cost of capital× operating assets)

<em>Division ABC</em>

Residual income = 200,000 - (10%×750,000) = $125,000

Residual income= $125,000

<em />

<em>Division XYZ</em>

Residual income = 210,000 - (10% ×800,000) = $130 ,000

Residual income= $130,000

Division XYZ has a higher residual income of $130,000 compared to the $125,000 of division ABC. A difference of $5,000 higher.

4 0
3 years ago
Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Information f
dmitriy555 [2]
The answer is a , make sure you pick that oneb
7 0
3 years ago
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