Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - Below is an extract from the business activities of TATA Plc. This company currently manufactures 20,000 motor brake pads per year. Cost information obtained from the company is as follows:
Total (£)
per unit (£)
Direct materials
240,000
12
Direct labour
200,000
10
Variable manufacturing
Overhead costs
20,000
1
Fixed manufacturing
140,000
7
Share of non-manufacturing
Overheads
80,000
4
Total costs
680,000
34
One of TATA's Chinese suppliers has offered to supply 20,000 brake pads per year at £28 per unit for a minimum of three years. If TATA outsources the manufacturing of the brake pads, the direct labour will made redundant. Direct material and variable overhead costs will be avoided. Fixed manufacturing overhead costs would be reduced by £25,000 per year, but non-manufacturing overhead costs will not change.
Note: The capacity to be released from outsourcing the brake pads have no alternative use for TATA.
Required -
1. Considering the information provided above, determine the annual costs to be incurred / saved by TATA in the production of the brake pads.
2. Should TATA MAKE or BUY the brake pads. Give reasons.
Presented below is a list of possible transactions. Analyze the effect of the 18 transactions on the financial statement categories indicated.
Snow, Inc., issued $80,000 of four year, 8 percent bonds at 96.
What is the expected return of the portfolio if Soda, GreenGrass, and Tanners have expected returns of 0.01, 0.18, and 0.01, respectfully?
Prepare an income statement for The Luxury Flooring Company for the year ended December 31, 2021. As a part of the income statement
Helen is single and has the appropriate private hospital cover. Compute the Helen's taxable income for the current tax year
Identify four corporate stakeholders. What is international integrated reporting and how does it differ from the current financial reporting system we have?
Manny, age 58, developed a severe heart condition, and his physician advised him to install. How much of the expenditure can Manny deduct as a medical expense?
Provide a flow chart for the above sales transaction processing of a manufacturer. The ace manufacturing company's sales division receives
State appropriate null (Ho) and alternative (H1) hypotheses. What is the critical value if we work with a significant level a = 0.05? What is the decision rule?
on december 3 mack company sold 500000 of merchandise to pickert co. terms 110 n30. the cost of the merchandise sold
Expound on the current rate method of FE exposure. Define it and describe how it treats income statement, balance sheet and stockholders equity items.
Which is not true about the general ledger? It is the listing of all the account names being used by a business with no amounts being reported.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd