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mina [271]
3 years ago
11

Grey Inc. has been purchasing a component, Z for $85 a unit. The company is currently operating at 75% of full capacity, and no

significant increase in production is anticipated in the near future. The cost of manufacturing a unit of Z, determined by absorption costing method, is estimated as follows: Direct materials $30 Direct labor 15 Variable factory overhead 26 Fixed factory overhead 10 Total $81 Prepare a differential analysis report, dated March 12 of the current year, on the decision to make or buy Part Z.
Business
1 answer:
IgorLugansk [536]3 years ago
3 0

Answer:

The difference between buying and making is $14 per unit. It is $14 cheaper to make the unit.

Explanation:

Giving the following information:

Purchasing price= $85 a unit.

Variable cost per unit:

Direct materials $30

Direct labor 15

Variable factory overhead 26

<u>Because there is unused capacity, the fixed costs won't increase. Fixed factory overhead should not be taken into account.</u>

Total unitary variable cost= $71

The difference between buying and making is $14 per unit. It is $14 cheaper to make the unit.

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2 years ago
Crystal Lodging recorded $330,000 in revenues, $247,500 in expenses, and $45,000 of dividends for the year. The company began th
Luda [366]

Answer:

Change in Assets is $127,500

Explanation:

The accounting equation for a corporation is:

Assets = Liabilities + Stockholders' Equity

⇒ Liabilities = Assets - Stockholders' Equity

= $285,000 - $130,500

= $154,500

At the end of years,

  • Liabilities amount = Liabilities in the beginning + Change in liabilities = $154,500+ $90,000 = $244,500
  • Stockholder's equity amount = Stockholder's equity + Change in stockholder's equity = $130,500 + $37,500 = $168,000

The assets at the end of year = $168,000 + $244,500 = $412,500

Change in Assets = $412,500 - $285,000 = $127,500

Shorter answer:

Change in Assets = Change in Liabilities + Change in Stockholders' Equity

= $90,000 + $37,500 = $127,500

8 0
3 years ago
What is the price at which equilibrium is achieved?
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The price at which equilibrium is reached is known as the equilibrium price. In economics, the equilibrium price is reached when the quantity of a certain product will match the demand of a certain product with regard to price per product. In order to solve for this, you have to compute for quantity demand and quantity supply. After that, you have to graph the line of these two equations and find where these two lines would intersect to find the equilibrium price. 
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3 years ago
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ruslelena [56]
For this case we have an equation of the form:
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