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Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its cost per rear wheel assembly is as follows (based on annual production of 2,000 units):
Direct materials . . . . . . . . . . . . . . . . . . . . . . . $50Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . 106Variable overhead . . . . . . . . . . . . . . . . . . . . . 32Fixed overhead . . . . . . . . . . . . . . . . . . . . . . . 94Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $282Trailblazers has offered to sell the assembly to Mobility for $220 each. The total order would amount to 2,000 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $20,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $80,000. Required :Should Mobility make rear wheel assemblies or buy them from Trailblazers? Prepare a schedule that shows the differential costs per rear wheel assembly.
youcpa is a regional cpa firm engaged in public audit work of small- and medium-size firms in the midwest. the youcpa
Midwest Corp completed the following transactions in 2012, the first year of operation.
Compute the predetermined overhead rate under the current method, and determine the unit product cost of each product for the current year.
Journalize and post the closing entries. Indicate closed accounts by inserting a line in both balance columns opposite the closing entry and prepare a post-closing trial balance.
Prepare a journal entry to close out the balance in this account to cost of goods sold. (Round your intermediate calculations to 2 decimal places - Compute the amount of underapplied or overapplied overhead for the year, and show the balance in yo..
customer profitability and ethics. snark corporation manufactures a product called the snark which it sells to
Today, many companies face budgetary challenges on a continual basis. Two critical aspects that businesses lack are effective control practices and monitoring.
A bond with an annual coupon payment of $100 originally sold at par for $1,000. Market interest rates are currently 12%. This bond would be selling at a in order to compensate the purchaser for the below market coupon rate.
Bermudez Leasing Company purchased specialized equipment from Holmes Company on December 31, 2009 for $400,000. On the same date, it leased this equipment to Berry Company for 5 years, the useful life of the equipment.
questionarcher daniels midland company is considering buying a fresh farm that it plans to operate for 10 years. the
Sachi Wong, store manager for Hawk Appliance, does not know how to price a GE dishwasher that cost the store $399. Sachi knows her boss wants a 40% markup on cost. Can you help Sachi price the dishwasher?
What was the cost of raw materials put into production during the year and how much of the factory labor cost for the year consisted of indirect labor?
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