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
NNADVOKAT [17]
3 years ago
13

Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $21, computed as fol

lows: Direct materials $ 8 Direct labor 5 Variable manufacturing overhead 3 Fixed manufacturing overhead 5 Unit product cost $ 21 An outside supplier has offered to provide the annual requirement of 2,900 of the parts for only $16 each. The company estimates that 80% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. Assume that direct labor is an avoidable cost in this decision. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:a. $1 disadvantage
b. $1 advantage
c. $2 advantage
d. $4 disadvantage
Business
1 answer:
Len [333]3 years ago
3 0

Answer:

$4 advantage

Explanation:

In this question we need to compare the cost between the relevant cost and the outside supplier cost

The relevant cost is

= Direct material per unit + direct labor per unit + variable manufacturing overhead per unit + fixed manufacturing overhead per unit

= $8 + $5 + $3 + $5 × 80%

= $8 + $5 + $3 + $4

= $20

Since 80% of the fixed manufacturing cost above is eliminated so we considered the same

And, the outside supplier cost is $16

So based on the above calculation, the financial advantage is

= $20 - $16

= $4 advantage

This shows the company should purchased from outside supplier as it saves $4

You might be interested in
Which activities are often required of someone who is in the performing arts?
solmaris [256]

Answer:

Writing creatively, remembering a script and entertaining people.

Explanation:

Performing arts is an art in where the artists show the artistic expressions by the use of their voices, bodies or inanimate objects. All the disciplines involved in performing arts are performed in front of a live audience. The artists are called Performers. They can be comedians, magicians, circus artists, musicians, actors, dancers, singers etc. and entertain the People.

It is important in performing arts that artists know to write an script creatively so that it can gain attention and influence the audience. Similarly remembering the script in a right way with required expressions is also important before performing in front of audience.

7 0
3 years ago
Read 2 more answers
ABC Corporation has noticed the following transactions havent been account for in its income statement for the year ended Decemb
grin007 [14]

Answer:

The proper amount of expenses to be included in the income statement for the year is $6,650

Explanation:

The computation of the expense amount which is included in the income statement is shown below:

= Repair expenses + electricity bill + insurance expense

= $4,650 + $800 + $1,200

= $6,650

The insurance expenses are given for the three months but we have to calculate for the 2 months only  

So for two months = $1,800 × 2 ÷ 3 = $1,200

And, the wages are given for the last year which is not included in the income statement as it shows outstanding wages. So, we do not consider it.

5 0
3 years ago
To encourage employee ownership of the company's common shares, KL Corp. permits any of its employees to buy shares directly fro
Ostrovityanka [42]

Answer:

Dr Cash 105,600

Dr Compensation Expense 14,400

Cr Common Stock 10,000

Cr Paid-In Capital – Excess of Par 110,000

Explanation:

KL Corp Journal entry

Dr Cash 105,600

Dr Compensation Expense 14,400 (10,000*12*12%)

Cr Common Stock 10,000 (10,000*1)

Cr Paid-In Capital – Excess of Par 110,000

(10,000*(12-1))

5 0
3 years ago
A government deficit has decreased from 100 to 60. The country's trade deficit is 120 and private savings equal 80 and investmen
charle [14.2K]

Answer:

40

Explanation:

According to Ricardian theory, any change in budgets deficits or surpluses should be completely offset by an equal change in private savings.

In this case, the original amount of private savings was 80, but since the budget deficit decreased by 40, then the private saving should also decrease by 40. The total private saving = 80 - 40 = 40

3 0
3 years ago
1. The Incident Command System (ICS) is only applicable to large, complex incidents.
Alexus [3.1K]

Answer: False

The ICS which stands for Incident Command System is the standard procedure to be applied to all types of incidents. These incidents range from small emergencies up to the large and complicated situations or events. Some of the incidents that ICS can tackle are medical emergencies, both natural and unnatural disasters, terrorist attacks, chemical spills, traffic incidents, and so on.

8 0
4 years ago
Read 2 more answers
Other questions:
  • Please Help! My teacher is very vague on his website that I normally use for the answers on his worksheets.
    15·1 answer
  • Paulina works as a software engineer for her firm. Recently, her company was acquired by another firm that had its own informati
    10·2 answers
  • Which of the following statements is true of labor cost flows associated with a job-order costing? a.They reflect only indirect
    15·1 answer
  • Which is the safest way to invest money
    13·1 answer
  • Explain the difference between a label and a hangtag
    5·1 answer
  • Which loan type requires you to make loan payments while you’re attending school?
    9·2 answers
  • The government in Chile recently informed Clint Travis' company that his retail grocery chain in Chile would have to be graduall
    8·1 answer
  • the condition of Nepalese worker in foreign employment is poor what are the reasons behind it write any five reasons​
    14·2 answers
  • In what circumstance would a violation of consumer
    11·1 answer
  • Companies that have preferred stock outstanding promise to pay a stated dividend for an infinite period. Preferred stock is trea
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!