Answer:
Supplier's quotation (2,400 x $6.25) 150,000
Less: Relevant cost of production:
Direct material (2,400 x $31) 74,400
Direct labour (2,400 x $18) 43,200
Variable overhead (2,400 x $9) <u>21,600</u> <u>139,200</u>
Savings <u> 10,800</u>
The parts should be produced in-house since the relevant cost of production is lower than supplier's quotation.
Explanation:
In this case, we need to compare supplier's quotation to the relevant cost of production. The price of $6.25 above was computed by dividing the total price charged by the supplier by the number of parts. Moreso, the relevant cost of production is obtained by the aggregate of direct material, direct labour and variable overhead.
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<h3>Project Filter</h3>
When looking or searching for a particular project that meet your requirement in a work area, in order to find the project the best thing to do is to include the following filter as it will enables you to find the project you are looking for;
- Project name
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Answer:
c. none of these
units started into the process this period plus units in beginning inventory
Explanation:
In FIFO , the physical units are divided between the beginning units, units started in process and the ending units. But as all the materials is added at the beginning of the process so the FIFO physical units would be divided between the units started into the process this period plus units in beginning inventory and hence the equivalent units for materials will be calculated.
So the best choice is option c.
Answer:
$9.05
Explanation:
the information about prices and costs is missing, so I looked it up:
contribution margin per yard for silk = $18 - $4.10 - $2.70 - $3.51 - $0.90 = $6.79
contribution margin per yard for polyester = $10.20 - $0.80 - $2.90 - $3.77 - $0.60 = $2.13
contribution margin per machine hour:
silk = $6.79 x 1/0.75 = $9.05
polyester = $2.13 x 1/0.5 = $4.16
