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
tatuchka [14]
3 years ago
7

Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 65,00

0 units of RX5 follows. Direct materials $ 5.00 Direct labor 9.00 Overhead 10.00 Total costs per unit $ 24.00 Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 65,000 units of RX5 for $18.00 per unit. Required: 1. Determine the total incremental cost of making 65,000 units of RX5. 2. Determine the total incremental cost of buying 65,000 units of RX5. 3. Should the company make or buy RX5
Business
1 answer:
balandron [24]3 years ago
4 0

Answer:

1. The total incremental cost of making 65,000 units of RX5

Total Direct Material + Total direct Labour + Variable Overhead cost

Total Direct Material = 65,000 units * $5 = $325,000

Total Direct Labour = 65,000 units * $9 = $585,000

Variable Overhead cost = $65,000 * 10 = $650,000. $650,000 *(1- 80%) = $650,000 *20% = $130,000

Hence, The total incremental cost of making = $325,000 + $585,000 + $130,000 = $1,040,000

2. The total incremental cost of buying 65,000 units of RX5 =

The cost to buy the units = 65,000 units * $18 = $1,170,000

3. The company should be making the RX5 because the total cost of making the 65,000 unit of RX5 is lesser than cost of buying the 65,000 units of RX5

You might be interested in
Spokes Bikes has 18 different bicycle models that can be created in over 2 million combinations. Each combination is designed to
vampirchik [111]

Answer:

Correct option is (C)

Explanation:

Mass customization refers to manufacturing products suited for individual needs and preferences at the same time producing huge amount of products at low cost offering value to customers.

Customers are allowed to make modifications as per their requirements in the basic model offered by the organization. So customer is free to pick the color, design and model of their choice.

Spokes bikes is therefore using mass customization.

3 0
3 years ago
This is a nonproductive learning behavior: completing assignments and then noting what was learned and how to improve next time
pogonyaev
Thank you for posting your question here at brainly. I hope the answer will help you. Feel free to ask more questions.

Among the choices the answer should be Quickly skimming readings and briefly looking at graphics<span>in the readings. </span>
3 0
3 years ago
At March 1,2020, Candy inc. Had supplies on hand of $500. During the month Candy purchased supplies of $1200 and used supplies o
solong [7]

Answer: The March 31 adjusting journal entry shoud include $1200

Explanation: Given that the

Supplies on hand = $500

Candy purchased supplies of $1200 and used supplies of $500

The unused supplies will be:

1200 - 500 = 700 dollars

The March 31 adjusting journal entry shoud include the addition of the supplies on hand and the unused supplies. That is,

500 + 700 = 1200 dollars

8 0
3 years ago
The sales of Carephase Company for the year are as given below: Quarter 1 $400,000 Quarter 2 $360,000 Quarter 3 $620,000 Quarter
Elza [17]

Answer:

The correct answer is $588,000.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the cash receipts for Quarter 4 by using following formula:

Cash receipts for Quarter 4 = Cash Sales + Cash collected from credit sales in Qtr 4 + Accounts receivable of Qtr 3

Where, Cash sales = $580,000 × 50% = $290,000

Cash collected from credit sales in Qtr 4 = ($580,000 × 50%) ×60% = $174,000

Accounts receivable of Qtr 3 = ($620,000 × 50%) × 40% = $124,000

By putting the value, we get

Cash receipts = $290,000+$174,000+$124,000

= $588,000

6 0
3 years ago
Company A manufactures a moderately priced set of lawn games that sells for $125. The company currently manufactures and sells 2
AfilCa [17]

Answer:

$27,500

Explanation:

As mention in the question the company selling the 2000 seats

also the manufacturing cost is =$40

Direct labor cost =$15

As the seat company  A =500 seats

So the Direct Material Cost= seat company  A allotment *manufacturing cost

=500*40

=$20,000

Also the Direct labor cost =seat company  A allotment *direct labor cost

=$500*$15

=$7500

Therefore the total relevant cost of the firm is

=Direct Material cost +Direct labor cost

=$20,000+$7500

=$27,500

5 0
3 years ago
Other questions:
  • In one statistics course, students reported studying an average of 9.92 hours a week, with a standard deviation of 4.54. jessica
    9·1 answer
  • Marketing research refers to:
    6·1 answer
  • Freda is a cash basis taxpayer. In 2019, she negotiated her salary for 2020. Her employer offered to pay her $21,000 per month i
    10·1 answer
  • Your friend says your car is worth about 50 dollars. Your friend is using money as a
    9·2 answers
  • A CSR should not use email, newsletters, managers and other
    7·1 answer
  • Google Ads offers a variety of campaign types which determine where your ad will appear and the format in which it will be displ
    9·1 answer
  • Lax LLC purchased only one asset during the current year (a full 12-month tax year). On August 26 Lax placed in service computer
    15·1 answer
  • When a standalone organization is created and owned by two or more parent companies together, the strategic alliance is referred
    9·1 answer
  • At the beginning of the day, a company has a cash balance of $11,450 and no float. During the day, the company wrote three check
    9·1 answer
  • A sandwich maker is needed in the deli restaurant. His job is to put together the sandwiches customers order. What type of resou
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!