Reference no: EM132594307
Question: Describe the circumstances of the following case study and recommend a course of action. Explain your approach to the problem, perform relevant calculations and analysis, and formulate a recommendation. Ensure your work and recommendation are thoroughly supported.
Case Study:
A vacuum manufacturer has prepared the following cost data for manufacturing one of its engine components based on the annual production of 50,000 units.
Description Cost per Month
Direct Materials $75,000
Direct Labor $100,000
Total $175,000
In addition, variable factory overhead is applied at $7.50 per unit. Fixed factory overhead is applied at 150% of direct labor cost per unit. The vacuums sell for $150 each. A third party has offered to make the engines for $60 per unit. 75% of fixed factory overhead, which represents executive salaries, rent, depreciation, and taxes, continue regardless of the decision. Should the company make or buy the engines?
Question: The cost to buy outside(externally) how do you obtain that value
Compute for the ending balance of raw materials
: Compute for the under-or over-applied overhead for the year. Is it under-applied or over-applied? Compute for the ending balance of raw materials
|
How a payroll practitioner could make use of the content
: Explore the CPA website and provide detailed information on one of the areas with respect to how a payroll practitioner could make use of the content
|
What is the amount of the monthly? payment
: If you buy the car and borrow through? GMAC, then what are the monthly? (end-of-month) payments for a 9?-year ?term?
|
How much revenue will ortiz recognize in 2021
: software and calibration service are all separate performance obligations. How much revenue will Ortiz recognize in 2021 for this contract
|
Perform relevant calculations and analysis
: The cost to buy outside(externally) how do you obtain that value - Describe the circumstances of the following case study and recommend a course of action
|
How determine the cash payback period for each proposal
: How Determine the cash payback period for each proposal.Proposals L and K each cost $500,000, have 6-year lives, and have expected total cash flows of $720,000
|
Determine whether the company should make or buy the bread
: A restaurant bakes its own bread, Prepare a differential analysis dated August 16 to determine whether the company should make or buy the bread.
|
Compute the revised annual depreciation
: On this date, the company concludes that the equipment has a remaining useful life of only 4 years with the same salvage value.
|
Find what is the direct labor rate and time variance
: Find what is the direct labor rate variance, time variance, If 4,000 units required 16,750 direct labor hours at an hourly rate of $28.40 per hour
|