Here, we are decide the best option between making the part or buying the part.
a. Make or Buy Analysis
Particulars Make amount Buy amount
Direct Materials $4.50
Direct Labor $1.00
Overhead (80% of Direct Labor) $0.80
Cost to buy <u> </u> <u>$4.70</u>
Cost per unit <u>$5.70 </u> <u>$4.70</u>
Cost Difference = $5.70 - $4.70
Cost Difference = $1.00
Therefore, the cost difference of making amount over buying amount is $1.00.
b. Because of the difference, Beto should buy the part because its cost is lesser than to make the part.
Therefore, the buying of the part is the best decision.
See similar solution about Analysis
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According to Richard Hackman and Greg Oldham, Job characteristics explain the effects of five core dimensions of employee satisfaction.
Explanation:
The research work of Richard Hackman and Greg Oldham mainly relates to the nature of the work with the objective of the working goals to fulfill until it reaches its saturating point. It can be only accomplished only with the mentioned features of the labor like types of skills, the importance of the task, choosing the apt task, self-governance, and the review of the overall performance of the work.
The features of the work are collectively referred to as job characteristics. It will have a positive effect unless the above-mentioned features of the labor are utilized in a proper mix to ensure full employee satisfaction.
List three services provided by a travel agent that benefit a business person who travels overseas frequently?
Familiarity with preferences for departure and return, seating is desirable and reliable
I think you forgot to give the options along with the question. I am answering this question based on my research and knowledge. The condition that must have existed during the second four-month period can be described as depression. I hope that this is the answer that has actually come to your great help.
Answer:
Direct costs are traced using an actual rate, and indirect costs are allocated using a budgeted rate
Explanation:
Normal costing refers to the actual cost of direct materials, direct labor, and manufacturing overhead applied. This cost is calculated by using a predetermined annual overhead rate.
Direct costs are expenses involved in producing goods or providing services and indirect costs are general expenses that are involved in operating.
The statement about normal costing which is not true is ''Direct costs are traced using an actual rate, and indirect costs are allocated using a budgeted rate''
