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valkas [14]
2 years ago
7

Vaughn’s Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $1270

00 Direct Labor 32000 Variable Overhead 44000 Fixed Overhead 30000 If Vaughn’s Manufacturing Company can purchase the component externally for $205000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Buy and save $2000 Make and save $16000 Buy and save $16000 Make and save $2000
Business
1 answer:
Margaret [11]2 years ago
6 0

Answer:

Buy and save $2000

Explanation:

Vaughn’s Manufacturing Company

Differential Analysis

                                        Make                 Buy

Direct Materials           $127000

Direct Labor                  32000

Variable Overhead       44000

Fixed Overhead           30000           26000

<u>Purchasing Cost                                 $205000     </u>

<u>Total                             233,000           231,000</u>

From the above we see that the total costs to make are $ 233,000 and purchasing costs are $ 231,000. There's a difference of $ 2,000 so buying and saving $ 2000 is the correct option.

$ 26,000 ( 30000- 4000) are irrelevant costs that will continue whether the product is purchased or made.

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The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished product
denis-greek [22]

Answer:

The correct answer is (A)

Explanation:

The cost which is directly associated with converting materials into a finished product is known as direct labour cost. The cost of wages paid to employees is the direct cost involved in the manufacturing process. In other words, a cost that is directly involved in the production of goods and services is the direct cost, for example, direct cost, direct commission, direct material cost.

5 0
3 years ago
The value of which of these expressions is closest to e?
coldgirl [10]

Answer: B

Explanation:

Therefor, value 2.659 is closest to the value of e

( I hope this helped of not I’m sorry)

6 0
2 years ago
Sales and Production Budgets Ultimate Audio Company manufactures two models of speakers, U500 and S1000. Based on the following
mixas84 [53]

Answer:

Part a

Ultimate Audio Company

<u>Sales Budget </u>

<u>For the Month Ending June 30</u>

Product and Area         Unit Sales Volume  Unit Selling Price  Total Sales

Model U500 :

Northeast Region             140,000                       $45               $6,300,000

Southwest Region            160,000                       $45               $7,200,000

Total                                                                                            $13,500,000

Model U500 :

Northeast Region            100,000                       $80               $8,000,000

Southwest Region           125,000                       $80              $10,000,000

Total                                                                                           $18,000,000

Total Revenue from Sales                                                        $31,500,000

Part b

Ultimate Audio Company

<u>Production Budget </u>

<u>For the Month Ending June 30</u>

                                                                   Model U500     Model S1000

Expected Units to be Sold                           300,000             225,000

Add Desired Closing Inventory                      30,000                15,000

Total                                                               330,000             240,000

Less Desired Opening Inventory                  (25,000)              (10,000)

Total Production                                            305,000            230,000

Explanation:

<em>Note : I have attached the complete question as images below !</em>

A Sales Budget shows the Total Expected Revenue from sale of budgeted units.

     Total Revenue = Total Expected Units Sales x Selling Price Per Unit

A Production Budget shows the number of units to be produced to meet the Sales and Inventory targets

     Total Production = Expected Sales + Desired Closing Inventory - Desired Opening Inventory

5 0
3 years ago
Suppose bundle A contains 5 CDs and 5 DVDs and bundle B contains 2 CDs and 6 DVDs. If a consumer is able to rank different combi
Liono4ka [1.6K]

Answer:

E) a, b, and c are possible.

Explanation:

Consumer has different interests, thus they may prefer either Bundle A  with same volume of CD or DVDs or bundle B with more DVDs or even neither of any.

8 0
2 years ago
Jun. 15 Several MBA groups participate in TEAM adventures. Great Adventures provides services on account for $24,000 to these gr
zubka84 [21]

Answer:

June 15

Dr. Account Receivable $24,000

Cr. Service Revenue      $24,000

At the time of Receipt in July

Dr. Cash                          $24,000

Cr. Account Receivable $24,000

Explanation:

As the Services are performed on June 15, and Great Venture has a right to received the payment against the services provided. So, the revenue is recognized and The payment for the services has not been made yet. This result in the creation of account receivable, That is expected to receive in July.

In July the payment is received. The cash account will be debited as the cash is received and on the other hand account receivable will be credited to remove the due balance of $24,000 from receivables balance.

5 0
3 years ago
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