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
KengaRu [80]
3 years ago
13

Diamond Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $59 per unit. The

company, which is currently operating below full capacity, charges factory overhead to production at the rate of 40% of direct labor cost. The fully absorbed unit costs to produce comparable carrying cases are expected to be as follows:
Direct materials $35.00
Direct labor 18.00
Factory overhead (40% of direct labor) 7.20
Total cost per unit $60.20

If Diamond Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 15% of the direct labor costs.
(a) Prepare a differential analysis dated February 24 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case.
(b) On the basis of the data presented, would it be advisable to make the carrying cases or continue buying them? Explain.
Business
1 answer:
Gemiola [76]3 years ago
5 0

Answer:

<u>Part(a) Differential analysis as at February 24</u>

Make (Alternative 1) :

Direct Materials                             $35.00

Direct labor                                    $18.00

Variable Overheads                      $2.70

Fixed Overheads                           $0.00

Total Make Costs                         $55.70

Buy (Alternative 2) :

Total Purchase Cost                    $59.00

<u>(b) On the basis of the data presented, would it be advisable to make the carrying cases or continue buying them? </u>

It is clear that from comparison of the cost of Purchase and the Cost of Making the Carrying Cases, the Cost of Making the Carrying Cases is lower than the Cost of Purchasing the Cases by $3.30

It is thus advisable to make carrying cases instead of buying them

Explanation:

Total Make Costs;

The Factory fixed overheads are irrelevant to this decision hence they were ignored in the make cost calculations.

You might be interested in
Economists sometimes give conflicting advice because
Nataly [62]
B. Economists have different values and scientific judgment. Economists exercise both subjective and objective judgments about data that they collect and observations that they make. These values and judgments differ among economists which can affect their advice or opinions, sometimes leading to conflicting advice. 
5 0
3 years ago
According to generally accepted accounting principles (GAAP), revenue is recognized as income when:
bogdanovich [222]

Answer:

the transaction is complete and the goods or services are delivered.

Explanation:

According to generally accepted accounting principles (GAAP), the revenue should be recognized when the goods or services are delivered and the transaction is completed in all respects.  

The revenue recognition principle applies when the revenue is realized or earned whether cash is received or not plus it also follows the accrual basis of accounting. Here, realizable means that customer received the product but the payment is made at the later date

4 0
3 years ago
In a research experiment, Priya hears the following list of words:
Juli2301 [7.4K]

Answer:

orange

hope this answer may help you

5 0
3 years ago
Read 2 more answers
Game theory can help us understand why Xerox did not successfully exploit the opportunity it had in IT. If Xerox commercializes
Arisa [49]

If Xerox commercializes PC technology and its rivals do not Xerox payoff is expected to be $250m, whereas the competitors’ payoff is $75m.

<h3>What is game theory?</h3>

This is the game strategy that involves two players where each of the players have to pick the most favorable choice based on the choice of the other person.

Here it would be best for Xerox to pick option B because this is where they would be able to get the most advantage.

Read more on game theory here:

brainly.com/question/13548182

#SPJ1

<h3>Complete question</h3>

Game theory can help us understand why Xerox did not successfully exploit the opportunity it had inIT. If both Xerox and competitors continue with old technology the payoff for XeroxSelect one:a.

is $150m, whereas the competitors’ payoff is $325m.

b. is $2

50m, whereas the competitors’ payoff is $75m.

c.

is $75m, whereas the competitors’ payoff is $250m.

d.

is $325m, whereas the competitors’ payoff is $150m.

3 0
1 year ago
When command is transferred, then all personnel involved in the incident should be told.
olga nikolaevna [1]

Based on the principle of formality, the correct answer goes:

  • The effective time and date of the transfertransfertransfertransfer

<h3>Command of transfer</h3>

When command is transferred, then all personnel with a need to know should be told: The effective time and date of the transfer.

In conclusion, we can conclude that the correct answer is as informing about effective time and date.

Learn more about transferring officer here: brainly.com/question/10721205

6 0
3 years ago
Other questions:
  • You might be required to write other employment documents and follow-up messages during the employment process. These documents
    10·1 answer
  • Laura sells two sizes of ice cream: pints and gallons. She earns $3.50 for each pint she sells, and $10 for each gallon. If she
    9·1 answer
  • Suppose a new and more liberal Congress and administration are elected. Their first order of business is to take away the indepe
    14·1 answer
  • In 2018, DFS Medical Supply collected rent revenue for 2019 tenant occupancy. For income tax reporting, the rent is taxed when c
    5·1 answer
  • CAPITAL BUDGETING CRITERIA Your division is considering two projects. It’s WACC is 10%, and the projects’ after-tax cash flows (
    15·1 answer
  • Unlike in the case of constant costs, increasing-cost conditions correspond to a ________________ production possibilities front
    14·1 answer
  • An associate professor of physics gets a $200 a month raise. She figures that with her new monthly salary she can buy more goods
    13·1 answer
  • Broker A is involved in an exclusive right to sell listing with his seller client, Seller S. After receiving the property condit
    5·1 answer
  • An effective performance management system is comprised of four steps: defining performance, monitoring and evaluating performan
    13·1 answer
  • Widgets, Inc. makes a $300 on Widhets, Inc. makes a $300 account sale to Custom Motors. How is the sale recorded in the Accounts
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!