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Novay_Z [31]
3 years ago
7

Alanco, Inc. manufactures a variety of products and is currently manufacturing all of their own component parts. An outside supp

lier has offered to sell one of those components to Alanco. To evaluate this offer, the following information has been gathered relating to the cost of producing the component internally:
Direct Materials $4
Direct Labor $6
Variable Manufacturing Overhead $2
Fix Manufacturing Overhead, Traceable* $5
Fix Manufacturing Overhead, Common but Allocated $8
Total Cost $25.00
Supplier Price = $21
Units Per Year = 12,000
Fix manufacturing overhead, traceable is composed of two items:
Depreciation of Equipment: 30%
Supervisor Salary: 70%
Assuming the company has no alternative use for the facilities now being used to produce the component, complete the following analysis to determine if the outside supplier's offer should be accepted.
Based on this analysis, write an if statement to determine if Alanco should make or buy the component.
Alanco should ............. the component.
3 Per Unit Differential Cost 12,000 units
Make Buy Make Buy
Cost of purchasing
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
total costs,
Based on this analysis, wrie an if statement to determine if Alanco should make or buy the component. Alanco should the _____________component
Business
1 answer:
klio [65]3 years ago
7 0

Answer:

If the company decides to purchase the component from the outside supplier, its operating income will decrease by $66,000 per year. Therefore, Alanco should keep producing the component.

Explanation:

cost of producing the component (per unit):

direct materials $4

direct labor $6

variable manufacturing overhead $2

fixed manufacturing overhead, traceable $5 (non avoidable $1.50)

fixed manufacturing overhead, not traceable $8

total cost per unit = $25

units per year = 12,000

price offered by supplier $21 per unit

                         alternative A         alternative B       differential

                         keep producing    buy                      amount

purchase cost                        $0    $252,000          ($252,000)

avoidable man.

costs                 $186,000              $0                        $186,000

total                  $186,000              $252,000           ($66,000)

if the company decides to purchase the component from the outside supplier, its operating income will decrease by $66,000 per year.

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LO 5.2What is the cost of direct labor if the conversion costs are $330,000 and manufacturing overhead is $275,000?
zhenek [66]

Answer:

cost of direct labor =  $55,000

so correct option is A. $55,000

Explanation:

given data

conversion costs = $330,000

manufacturing overhead =  $275,000

to find out

cost of direct labor

solution

we get here cost of direct labor that is express as

cost of direct labor = Conversion costs - manufacturing overhead   ..............1

put here value we will get here

cost of direct labor = $330,000 - $275,000

cost of direct labor =  $55,000

so correct option is A. $55,000

7 0
3 years ago
Rowe Furniture Corporation is a Virginia-based manufacturer of furniture. In a recent quarter, it reported the following activit
Zina [86]

Answer:

$5,857; $1,105

Explanation:

Cash flows from investing activities:

= Proceeds from sale of property and equipment + Sale of investments - Purchase of property, plant, and equipment

= $6,594 + $134 - $871

= $5,857

Therefore, the net cash provided by the investing activities is $5,857.

Cash flows from Financing activities:

= Borrowings under line of credit (bank) + Proceeds from issuance of stock - Payments to reduce long-term debt - Dividends paid

= $1,417 + $11 - $46 - $277

= $1,105

Therefore, the net cash provided by the investing activities is $1,105.

6 0
3 years ago
Which action best reflects the influence of John Maynard Keynes? O A. A business lobbies a government to reduce its overall tax
Sidana [21]

Answer:

Which action best reflects the influence of John Maynard Keynes?

B. A government gives jobs to workers during an economic recession.

Explanation:

John Maynard Keynes was a The British economist who strongly and vehemently advocated for "increased government expenditures, lower taxes, government offering full employment, and government intervention in economic activities" in order to stimulate demand, pull the economy out of recession, and kickstart it from slump.  He is known as the father of Keynesian Economics.

8 0
3 years ago
A property valued at $1 million is returning a net annual income of $85,000. what's its cap rate?
leva [86]
8.5% :))))))))))))))))))))
4 0
1 year ago
Whenever Congress has a perceived need for ongoing control of an economic activity, it has tended to create a a. regulatory agen
RUDIKE [14]

Whenever Congress has a perceived need for ongoing control of economic activity, it has tended to create a cabinet department.

The Vice President and the secretaries of agriculture, commerce, defense, education, energy, health and human services, homeland security, housing and urban development, interior, labor, state, transportation, and veterans affairs make up the cabinet. Cabinets come in three varieties: inset, full overlay, and partial overlay. Each phrase refers to the way a cabinet door or drawer rests against or inside a cabinet frame. The three varieties of cabinets also stand for various price ranges and fashion trends. Such a division is frequently referred to as the Prime Minister's Office. Various other nations have cabinet offices.

The Prime Minister's Office is a division of the Cabinet Office in the United Kingdom; a similar division exists in Australia and New Zealand.

Learn more about Congress here: brainly.com/question/491441

#SPJ4

7 0
1 year ago
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