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matrenka [14]
3 years ago
12

Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $22, computed as fol

lows: Direct materials $ 9 Direct labor 7 Variable manufacturing overhead 1 Fixed manufacturing overhead 5 Unit product cost $ 22 An outside supplier has offered to provide the annual requirement of 7200 of the parts for only $19 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:
Business
1 answer:
geniusboy [140]3 years ago
8 0

Answer:

$ 2 per unit on average

Explanation:

Calculation for what the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:

First step is to calculate the Relevant cost of making

Relevant cost of making = 9 + 7 + 1 + ( 5 * 80 % ) Relevant cost of making= $ 21

Now let calculate the Financial advantage of buying

Financial advantage of buying = ( 21 - 19 )

Financial advantage of buying= $ 2 per unit on average

Therefore the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:$ 2 per unit on average

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3 years ago
XYZ Co. is using a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $121,000 and 10
stira [4]

Answer:

the predetermined overhead rate is $12.10

Explanation:

The computation of the predetermined overhead rate is shown below:

The Predetermined overhead rate is

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6 0
3 years ago
g Marlboro Construction enters into a contract with a customer to build a warehouse for $725,000 on April 15, 2021 with a comple
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Answer:

B. $725,000

Explanation:

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Marlboro constructions expected value of the contract is 725,000 based on the given probability estimates of contract completion.

8 0
2 years ago
Swen Inc. is a global retail chain based in New York. It expands into France and sends Gerard, an American citizen and a trusted
Soloha48 [4]

Answer:

The correct answer is D

Explanation:

Expatriate manager is the one or the workers who are migrated from their home country to the outside nations in order to earn more than the in the home country.

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3 years ago
What are blueprints?
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answer:oa.

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