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
Fudgin [204]
3 years ago
10

Eichholtz Company uses 10,000 units of a part in its production process. The costs to make a part are: direct materials, $12; di

rect labor, $25; variable overhead, $13; and applied fixed overhead, $30. Eichholz has received a quote of $55 from a potential supplier for this part. If Eichholtz buys the part, 70 percent of the applied fixed overhead would continue. Eichholtz Company would be better off by
a) $50,000 to manufacture the part
b) $150,000 to buy the part
c) $40,000 to buy the part or
d) $160,0000 to manufacture the part
Business
1 answer:
slava [35]3 years ago
3 0

Answer:

c) $40,000 to buy the part

Explanation:

For computing the better off first we have to compute the per unit cost which is shown below:

= Direct material per unit + Direct labor per unit + variable overhead + applied variable overhead

= $12 + $25 + $13 + $30 × 30%

= $12 + $25 + $13 + $9

= $59

The difference cost would be

= $59 - $55

= $4

Now the better off would be

= Number of units × difference cost

= 10,000 units × $4

= $40,000

You might be interested in
Match each item with a statement below. 1. Defines roles and responsibilities for information security 2. Too risky for most bus
ValentinkaMS [17]

Answer:

1 and 6,  3 and 4, 8 and 9, 2 and 7

Explanation:

1 and 6: For developing IR policy, roles and responsibilities for informatino security must be clearly defined

3 and 4: a single trainer working with multiple trainees is trainees receiving presentation

8 and 9: An online resource for IR can serve as a training case for staff

2 and 7: an unsual pattern in a system log can be risky for the business

3 0
3 years ago
Read 2 more answers
Which of the following is an common factor of failure for small businesses
Alex777 [14]

A few of the following can be considered major factors in failure of small businesses:

-Lack of financial planning: when a business is born it needs to critically plan out the first few years of running. Small business often fail to plan out for the future and have less working capital at hand.

-Lack of expertise: small business cannot afford specialist managers and this may be a reason for failure

-no investment in marketing and research can also be a reason.


6 0
3 years ago
After Hurricane Katrina there was considerable public outrage that many of the properties were not insured against flooding alth
STALIN [3.7K]

Answer:

A. the risk of wind damage is potentially diversifiable, but the risk of flooding is not

Explanation:

Based on the scenario being described it can be said that the best explanation for these different approaches would be that the risk of wind damage is potentially diversifiable, but the risk of flooding is not. Meaning that  most insurance companies cover wind damage because it is most likely during a hurricane but flooding may be a unique situation which is not always covered by most insurance companies/policies.

7 0
3 years ago
1. What is bartering?
Vinil7 [7]

Answer:

It means exchange for good or service without using any money

4 0
3 years ago
Read 2 more answers
Fred Company paid $48,000 for a two-year insurance policy, ($2,000 per month), on October 1 and recorded the $48,000 as a debit
QveST [7]

Answer:

The adjusting entry Fred should make on December 31, the end of the accounting period:

b. Debit : Insurance Expense 6,000 Credit: Prepaid Insurance 6,000

Explanation:

On October 1, Fred Company paid $48,000 for a two-year insurance policy, ($2,000 per month)

From October 1 to December 31, Fred Company has used the insurance for 3 months.

Insurance Expense = $2,000 x 3 = $6,000

The adjusting entry Fred should make on December 31, the end of the accounting period:

Debit Insurance Expense $6,000

Credit Prepaid Insurance $6,000

7 0
3 years ago
Other questions:
  • According to Herman, one of the differences of managing a nonprofit versus a for-profit corporation is
    9·1 answer
  • The Diagonal Stamp Company, which sells used postage stamps to collectors, advertises that its average price has increased from
    11·1 answer
  • Margie is 15 and claimed as a dependent by her parents. she has $800 in dividends income and $1,400 in wages from a part-time jo
    10·1 answer
  • the butler county tax assessor determines that the market value of greg wilsons home is $123000. the rate of assessment in butle
    8·1 answer
  • ​commitments to make or receive payments in the future are made easier by money's function as a _____.
    11·1 answer
  • Emerald corporation's current ratio is 0.5, while ruby (emerald's competitor) company's current ratio is 1.5. Both firms want to
    5·1 answer
  • Russell’s has a bond issue outstanding. The issue's indenture provision prohibits the firm from re-deeming the bonds during the
    10·2 answers
  • How does recycling help bridge the gap between renewable and nonrenewable resources
    5·1 answer
  • MC Qu. 128 Leeks Company's product has... Leeks Company's product has a contribution margin per unit of $13.57 and a contributio
    14·1 answer
  • Which phrase best completes the diagram?
    7·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!