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stealth61 [152]
2 years ago
11

A company manufactures components for use in producing one of its finished products. when 12,000 units are produced, the full co

st per unit is $35, separated as follows: direct materials $ 5 direct labor 15 variable overhead 10 fixed overhead 5 a supplier has offered to sell 12,000 components to the company for $37 each. if the company accepts the offer, some of the facilities currently being used to manufacture the components can be rented as warehouse space for $40,000. however, $3 of the fixed overhead currently applied to each component would have to be covered by the company's other products. what is the differential cost to the company of purchasing the components from the supplier?
Business
1 answer:
Temka [501]2 years ago
6 0

Cost of Making the product is as below, We shall exclude the amount of $3 per unit of fixed cost as it is not a relevant cost

Cost of Manufacturing Cost of Buying Difference

Direct Materials $5

Direct Labour $15

Variable Overheads $10

Fixed Overheads $2

Total Manufacturing Cost $32

Total Purchase Cost $37

Total Cost (12000 Units) 384000 444000 60000

Rent Income (40000) (40000)

Total Difference 20000

Thus as can be observed above the company incurs an extra cost of $20000 if it purchases the component from a third party. Thus its advisable if the company produces the component in its own premises.

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Schwiesow Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.05 Direct labor
hoa [83]

Answer:

Total overhead= $17,600

Explanation:

Giving the following information:

Variable manufacturing overhead $ 1.65

Fixed manufacturing overhead $ 11,000

Units produced= 4,000

<u>The total overhead is the sum of the total variable cost and the total fixed costs.</u>

Total overhead= 1.65*4,000 + 11,000

Total overhead= $17,600

8 0
2 years ago
Assume India can produce either 15 bottles of milk or 50 cartons of eggs using all of its available resources, and Indonesia can
diamong [38]

Answer:

50 cartons of eggs

Explanation:

The comparative advantage is a principle in which a country specializes in the production a good in which it has a lower opportunity cost than others.

                 Bottles of milk     cartons of eggs

India                  15                              50

Indonesia          25                             35

In this situation, the opportunity cost for India of producing 1 bottle of milk is producing 3.33 cartons of eggs. The opportunity cost for Indonesia of producing 1 bottle of milk is producing 1.4 cartons of eggs. This means that Indonesia has a lower opportunity cost and a comparative advantage in producing bottles of milk.

In the other part, the opportunity cost for India of producing 1 carton of eggs is producing 0.3 bottles of milk and the opportunity cost for Indonesia of producing 1 carton of eggs is producing 0.71 bottles of milk. This means that India has a lower opportunity cost and a comparative advantage in producing cartons of eggs.

According to this, India would specialize in producing eggs as it has a comparative advantage and the country will produce 50 cartons of eggs.

5 0
2 years ago
Many manufacturers have quality control programs that include inspection of incoming materials for defects. Suppose a computer m
zimovet [89]

Answer:

Explanation:

There are total 5 batches and two boards are selected from each batch for inspection.

Let the boards are numbered from 1 to 5.

If the selected boards are 1 and 2, then it is represented in pair as (1, 2).

If the selected boards are 1 and 3, then it is represented in pair as (1, 3).

Similarly, other pairs can be obtained.

a) Let X be the number of defective boards observed among the two inspected.

If the boards 1 and 2 are the only defective boards in a lot of five, then

(1,2),x=2; (1,3),x=1; (1,4),x=1; (1,5),x=1;

(2,3),x=1; (2,4),x=1; (2,5),x=1;

(3,4),x=0;\ (3,5),x=0;\ (4,5),x=0.(3,4),x=0; (3,5),x=0; (4,5),x=0.

P(X=0)=  3/10 =0.3

P(X=1)={6 \over 10}=0.6P(X=1)=  6/10 =0.6

P(X=2)={1 \over 10}=0.1P(X=2)=  1/10 =0.1

b)

x                  0               1                    2

p(x)            0.3           0.6                0.1

​

​μ  X  =0⋅0.3+1⋅0.6+2⋅0.1=0.8

σ  X ² =(0−0.8)²  ⋅0.3+(1−0.8)²  ⋅0.6+(2−0.8)² ⋅0.1=0.36

μₓ=0.8, σX  =0.6

 

​

5 0
2 years ago
Discuss the current state of the US economy and its impact on the job market. Also discuss how economic trends such as globaliza
jonny [76]
<span>The current state of the US economy is in growing strength with respects to the former cabinet. Globalization is affecting the US economy. Primarily through technology and social feeds. We are in the information Era. As far as jobs, off shoring in our economy was once always a viable option. Now that we have a president who insists on the "American Made" branding has emboldened some companies to minimize their operations abroad and increase facilities at home. I work on software, and my job requires me to be in a wireless world. It is hard to compete with companies who hire third party IT hosts in other countries because it is simply cheaper. But, I find other means for work.</span>
6 0
2 years ago
Determining the Optimal Product Mix with One Constrained Resource Relax Spas provides two types of massage services, the Full Bo
m_a_m_a [10]

Answer:

Full body = $132

For trouble spots = $180

Explanation:

The computation of contribution margin per hour is shown below:-

For Full body

Contribution per service = $198

Massage time required in minutes = $90

Massage time required (90 min ÷ 60 min) = $1.5

Contribution per hour = $198 × $1.5

= $132

For Trouble spots

Contribution per service = $90

Massage time required in minutes = $30

Massage time required (30 min ÷ 60 min) = $0.5

Contribution per hour = $90 × $0.5

= $180

5 0
2 years ago
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