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I am Lyosha [343]
3 years ago
8

An outside supplier has offered to sell 23,000 units of part S-6 each year to Han Products for $22 per part. If Han Products acc

epts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $73,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier.
Business
1 answer:
sesenic [268]3 years ago
6 0

Answer:

                                                       Make Buy

Direct material                              85100  

Direct labour                                      253000  

Variable manufacturing overhead     52900  

Fixed manufacturing overhead       69000  

Opportunity cost                               73000  

Purchase cost                                         437000

Total                                               533000   437000

Financial advantage is 96000    

Explanation:

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3 years ago
Solve the problem using 6.2%, up to $128,400 for Social Security tax and using 1.45%, no wage limit, for Medicare tax.
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$3878.55

Explanation:

Step 1 :

It is given that Kristy has a biweekly gross earnings of $1950.

Since it is bi-weekly payments there are 26 payments in the year.

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Step 2 :

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Social security withholding = 6.2% of 50,700 = 6.2*50700/100 = $3143.40

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Total withholding = Social Security withholding + Medicare withholding 3143.40 + 735.15 = $3878.55

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