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Lisa [10]
3 years ago
11

Ortega Industries manufactures 19,900 components per year. The manufacturing cost of the components was determined to be as foll

ows: Direct materials$178,000 Direct labor 380,000 Variable manufacturing overhead 104,000 Fixed manufacturing overhead 260,000 Total$922,000 Assume that the fixed manufacturing overhead reflects the cost of Ortega's manufacturing facility. This facility cannot be used for any other purpose. An outside supplier has offered to sell the component to Ortega for $34. If Ortega Industries purchases the component from the outside supplier, the effect on operating profits would be a:
Business
1 answer:
professor190 [17]3 years ago
6 0

Answer: Increased profit as opposed to making them internally.

Explanation:

Make or buy decisions are management decisions as to whether production components should be produced internally or outsourced.

Buy decision

Unit price= $34

Total unites= 19900

Total cost= $34*19900=$676,600

Make decision

$

Direct materials 178,000

Direct Labor. 380,000

Variable overhead. 104,000

Relevant fixed overhead 260,000

Total $922,000

Unit price for make=922000/19900

Unit price=$46.33

Since buying outside is more cheaper than producing internally, it will be more profitable to outsource(buy).

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Equipments, Employee, Working Environment, Lack of Training, Finance, Time, etc

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place product and price

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Before prorating the manufacturing overhead costs at the end of 2016, the Cost of Goods Sold and Finished Goods Inventory had ap
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Answer:

Cost of Goods Sold will decrease by $2,679 after proration.

Explanation:

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= Overhead incurred - Overhead applied

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Therefore, the Cost of Goods Sold after the proration:

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Hence, the Cost of Goods Sold will decrease by $2,679 after proration.

3 0
3 years ago
the preferred type of retirement account for the typical college students working a part-time low-wage job would generally be:
Anna007 [38]

The Roth IRA. The SEP IRA. Simple IRAs and Simple 401(k) Plans (k). You contribute  Traditional after-tax dollars to a Roth IRA, retirement money grows tax-free, and you can generally make tax- and penalty-free withdrawals after the age of 5912.

With a Traditional IRA, you can contribute before or after taxes, your money grows tax-deferred, and withdrawals are taxed as current income once you reach the age of 5912. A Roth IRA is an Individual Retirement Account into which you make after-tax retirement. While there are no current-year tax advantages, your contributions and earnings can grow tax-free, and you can withdraw them tax- and penalty-free after age 5912 and five years.

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1 year ago
in the final​ analysis, how much did the inventory cost burlington​? the inventory cost for burlington is
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