1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
12345 [234]
3 years ago
11

Factor Co. can produce a unit of product for the following costs: Direct material $ 8 Direct labor 24 Overhead 40 Total product

cost per unit $ 72 An outside supplier offers to provide Factor with all the units it needs at $46 per unit. If Factor buys from the supplier, the company will still incur 60% of its overhead. Factor should choose to: A. Buy since the relevant cost to make it is $56. B. Make since the relevant cost to make it is $48. C. Buy since the relevant cost to make it is $48. D. Make since the relevant cost to make it is $32.
Business
1 answer:
dimaraw [331]3 years ago
4 0

Answer:

C. Buy since the relevant cost to make it is $48.

Explanation:

Factor Co.

                                               Make             Buy

Direct material                      $ 8

Direct labor                             24

Overhead                                40                   24 ( Irrelevant Cost)

Cost of  Purchase                                          46                                              

Total product cost per unit $ 72                $ 70

Irrelevant costs are costs that continue whether the product is produced internally or purchased from outside. Here irrelevant costs are $ 24 that is 60 % of overheads.

The relevant cost to make it is $8+ $24+ $16(40-24)= $ 48

It is better to buy the product as it is a little financially advantageous. $2 per unit.

You might be interested in
Residential Investment Payments of Factor Income to the rest of the world National Income Inventory Adjustment 0.00 Personal Con
Ivanshal [37]

Please find full question attached

Answer and Explanation:

Gross domestic product is calculated:

Gross Domestic Product(GDP) = Gross National Product (GNP)  - Receipts of factor income from rest of the world + Payments of factor income to the rest of the world

So to find GDP, we calculate GNP

GNP = NNP+Depreciation

To calculate GNP, we calculate NNP:

Net national product (NNP) =national income, so we have,

NNP = $2,445 billion

GNP = NNP + Depreciation = $2,445+$75

GNP = $2,520 billion

So we substitute in GDP formula to calculate GDP

GDP = 2,520 - 70 + 50 = $2500 billion

GDP = $2,500 billion

Government consumption and gross investment= Government transfer payments + Non-residential investments

Government consumption and gross investment is given by G

G = 200+250 = $450 billion

G = $450 billion

3 0
3 years ago
On March 1, Retro Inc. reported a balance in Supplies onf $200. During March, the company purchased supplies for $950 and consum
-BARSIC- [3]

Answer:

stockholer's equity will be overstated by $800.

Explanation:

The adjustment required is to record $800 of supplies used as an expense, hence, by carrying out the adjustment, net income is overstated by $800 so also retained earnings and shareholders' equity.

In other words,the balance that would be left in supplies is opening balance of $200 plus purchase of supplies which is $950 minus the supplies used.

balance of supplies=$200+$950-$800=$350

Option B is wrong the balance expected is $350 and the balance without adjustment is $200,that is $150 understatement not $350

4 0
3 years ago
Trade-offs between the characteristics that make information useful may be necessary or beneficial. Issuance of interim financia
SashulF [63]

Answer:

A- relevance and reliability

8 0
3 years ago
Which of the following scenarios might indicate that you have been a victim of identity theft?
shutvik [7]
Where are the answers? Don't have much to work with...
4 0
3 years ago
In terms of SUPPLY, what factors have contributed to the fall in oil prices?
mylen [45]
Current supply and output. Until recent years, Organization of Petroleum Exporting Countries (OPEC) often set supply through a quota system.
3 0
3 years ago
Other questions:
  • Which of the following is not a type of business organization
    14·2 answers
  • In considering the decision to adopt a dog, indicate which of the following is an example of a private cost, a private benefit,
    15·2 answers
  • Profit Margin, Investment Turnover, and ROI Briggs Company has operating income of $56,496, invested assets of $214,000, and sal
    10·1 answer
  • GreenLawn Co. provides landscaping services to clients. On May 1, a customer paid GreenLawn $72,000 for 6-months services in adv
    11·1 answer
  • Suppose you decide to follow in Vernon Smith's footsteps and conducted your own experiment with your friends. You give out 10 ca
    12·1 answer
  • Which of these sites would need additional investigation to check for reliability?
    11·1 answer
  • Marigold Corp. began the year 2022 with $98300 in its Common Stock account and a debit balance in Retained Earnings of $42100. D
    15·1 answer
  • An auditor noted that the accounts receivable department is separate from other accounting activities. Credit is approved by a s
    6·1 answer
  • Which of the following is a disadvantage of incentive compensation plans? Group of answer choices Employees are taxed heavily on
    12·1 answer
  • Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $700,000 cash. The l
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!