Calculate incremental costs of making and buying component

Assignment Help Managerial Accounting
Reference no: EM132759130

Question - Haver Company currently produces component RX5 for its sole product.

The current cost per unit to manufacture the required 55,000 units of RX5 follows.

Direct materials $4.00

Direct labor 8.00

Overhead 9.00

Total costs per unit 21.00

Direct materials and direct labor are 100% variable. Overhead is 70% fixed. An outside supplier has offered to supply the 55,000 units of RX5 for $19.00 per unit.

Required - Calculate the incremental costs of making and buying component RX5.

Reference no: EM132759130

Questions Cloud

What is the accounting rate of return for this machine : A company is planning to purchase a machine that will cost $35,400 with a six-year life and no salvage value. What is the accounting rate of return for machine
Negative effects of violence on children be lessened : How can the negative effects of violence on children be lessened ? What type of assistance will you ask for from the community as a whole?
Need a financial plan with graphs for management team : Question - Need a financial plan with graphs for management team and a graph for the business expenses - Mary Shaw: Director of Education/Principal $35,000
Eliminate person from being suspect in investigation : Class characteristics are very useful to eliminate a person from being the suspect in an investigation.
Calculate incremental costs of making and buying component : Direct materials and direct labor are 100% variable. Overhead is 70% fixed. Calculate the incremental costs of making and buying component RX5
Demonstration have had an adverse effect upon sentencing : Could the demonstration have had an adverse effect upon the sentencing? How? Why?
Find the distribution of the NPV of profit : Find the distribution of the NPV of profit over the 3-year horizon and analyze the sensitivity and trend charts. Summarize your conclusions
Standard for introduction of scientific evidence : Discuss the current legal standard for introduction of scientific evidence. Review the history of the standard.
Prepare the Sales and Production Budget : Desired ending inventory is 7.05% of next quarter budgeted sales in units. Prepare the Sales and Production Budget

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Briefly trace the development and growth of the organisation

Briefly trace the development and growth of the organisation from its beginnings to the present through the application of corporate strategies - what types of strategies have these been?

  Considering the acquisition of equipment

(Ignore income taxes in this problem.) Gull Inc. is considering the acquisition of equipment that costs $530,000 and has a useful life of 6 years with no salvage value. The incremental net cash flows that would be generated by the equipment are:

  Determine the minimum acceptable price for the job

How does managerial and financial accounting differ in terms of the amount of detail presented and nonmonetary and monetary information?

  What point should tranquil determine total manufacturing

Tranquil Teas makes bottled iced teas and uses a process cost system. At what point should Tranquil determine its total manufacturing costs?

  Determine what will be impact on company profit

Determine What will be impact on company profit if sales mix shifts between low margin and high margin products? Explain briefly different possible scenarios.

  How much more or less expense was booked

What journal entries did they book to go from the beginning balance to the ending balance? How much more or less expense was booked under the accrual basis than the cash basis?

  Discuss if assistant cost accountant behaved in ethical way

Discuss if the assistant cost accountant behaved in an ethical way. Discuss if there should be any type of corrective action. How should the company management

  Calculate the flexible budget variance for variable costs

Calculate the flexible budget variance for variable costs.Central Table Inc. has prepared a static budget at the beginning of the month.

  Which is the higher the amount of a company accounts

Which is the higher the amount of a company's accounts receivable turnover? the more likely a company will experience cash flow problems.

  What is shakira income if any on partial loan repayment

Shakira Inc. repaid Shakira $27,500 of the $137,500 outstanding loan. What is Shakira's income, if any, on the partial loan repayment?

  Allocate the costs of the two support departments

Allocate the costs of the two support departments to each of the two producing departments. Suva Private Hospital has two support departments

  Compute the cm per unit

Compute the C.M. per unit (compute selling price per unit and V.C. per unit first)

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd