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
BARSIC [14]
2 years ago
10

Beto Company pays $4.70 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is con

sidering making the part. Making the part would cost $4.50 per unit for direct materials and $1.00 per unit for direct labor. The company normally applies overhead at the predetermined rate of 200% of direct labor cost. Incremental overhead to make the part would be 80% of direct labor cost.
Required:
a. Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal places.)
b. Should Beto make or buy the part?
Business
1 answer:
Anastasy [175]2 years ago
3 0

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

<em>brainly.com/question/23287319</em>

You might be interested in
Governments at the federal, state and local levels enact laws that influence consumer behavior in all of the following ways, exc
Crazy boy [7]

All of the following ways that consumer behavior is influenced by laws that are passed by federal, state, and municipal governments, with the exception of, providing incentives to purchase specific brands over others.

<h3>What are the many governmental levels?</h3>

The federal government, state governments, and municipal governments are the three tiers of governance in the United States.

The U.S. Constitution grants Congress, the President, and the Federal courts, respectively, the authority to act as the legislative, executive, and judicial departments of the federal government. Three branches make up the federal government, which is the main and highest level of government in the US.

The first tier or level of democratic government is the Panchayati Raj system. Since the members of the Gram Sabha chose the Panch and the Gram Panchayat, they are accountable to the Gram Sabha.

To learn more about governmental levels, refer to?

brainly.com/question/9261004

#SPJ4

5 0
1 year ago
Wanda is in charge of acquisitions for her company. Realizing that water is important to company operations, Wanda buys a plant
iren [92.7K]

Answer:

This is a very unlikely situation, since the plant must be really large and the river probably didn't carry a lot of water in the first place. But even if this was possible, it would be illegal for a company to use 100% of the natural resources available. No law or regulation (municipal, state or federal) would allow such thing to happen and assuming it got to court, the court would rule against the company.

Since you need an environmental impact report before you start building a factory, then it would be unlikely that the factory or plant was legally authorized to operate in the first place. The only option is that they built a dam and that is highly regulated.

8 0
3 years ago
An increase in an effective maximum legal price will do what to prices and quantities actually sold in a market? Prices will ___
babunello [35]

Answer:

The answer is A

Explanation:

An increase in an effective maximum legal price will do what to prices and quantities sold in a market?

A maximum legal price is an effective tool to control prices. Usually, the price is below its equilibrium. An increase in the maximum legal price will increase prices and the quantities sold will decrease. When prices go up, companies offer more quantities of a product, but consumers demand less.

6 0
3 years ago
Juan would like to give his
Nitella [24]

Answer:

7%+18=10,000

Explanation:

I think that's how it goes u just need to solve it

3 0
3 years ago
Your division is considering two investment projects, each of which requires an up-front expenditure of $17 million. You estimat
denpristay [2]

Answer:

A

Explanation:

trust the brain bro.....

4 0
2 years ago
Other questions:
  • On November 1, 2021, Ziegler Products issued a $200,000, 9-month, noninterest-bearing note to the bank. Interest was discounted
    14·1 answer
  • Joe's Hardware is adding a new product line that will require an investment of $ 1,512,000. Managers estimate that this investme
    8·1 answer
  • Linkedin receives more than __________ of its visitors from countries like costa rica, malaysia, singapore, and the united kingd
    10·1 answer
  • Select the correct answer from the drop-down menu.
    14·1 answer
  • Florida state saving bond can be converted to $1000 at maturity date of five year from purchase if the state bond are to be comp
    8·1 answer
  • Norris Company declared cash dividends of $60,000 during the year. Cash dividends payable were $20,000 at the beginning of the y
    8·1 answer
  • A binding price ceiling for apartments (effective rent control) will:
    7·1 answer
  • "An individual owns a bicycle repair business as a sole proprietorship. He does not make a lot of money, but he does have $5,000
    15·1 answer
  • Is a measurement of the way suppliers respond to a change in price
    7·1 answer
  • The government decides to increase its spending by $6 billion. Over time the real GDP increased by $9 billion. The expenditure m
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!