Prepare the incremental analysis for the decision to make

Reference no: EM13579684

Schopp Inc. has been manufacturing its own shades for its table lamps. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 70% of direct labor cost. The direct materials and direct labor cost per unit to make the lamp shades are $3.79 and $4.80, respectively. Normal production is 34,600 table lamps per year. A supplier offers to make the lamp shades at a price of $13.20 per unit. If Schopp Inc. accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $41,230 of fixed manufacturing overhead currently being charged to the lamp shades will have to be absorbed by other products.

Prepare the incremental analysis for the decision to make or buy the lamp shades. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

	Make	Buy	Net Income Increase (Decrease)
Direct materials	$	$	$
Direct labor
Variable overhead costs
Fixed manufacturing costs
Purchase price
Total annual cost	$	$	$

Reference no: EM13579684

Questions Cloud

Winslow company expects sales of its financial calculators : winslow company expects sales of its financial calculators to be 213000 in the first quarter and 230000 in the second

Stahl inc produces three separate products from a common : stahl inc. produces three separate products from a common process costing 100433. each of the products can be sold at

Getty company expects sales for the first three months of : getty company expects sales for the first three months of next year to be 210000 260000 and 285000 respectively. getty

Machinery is purchased on july 1 of the current fiscal year : machinery is purchased on july 1 of the current fiscal year for 240000. it is expected to have a useful life of 4 years

Prepare the incremental analysis for the decision to make : schopp inc. has been manufacturing its own shades for its table lamps. the company is currently operating at 100 of

This income statement reflects sales of 100000 mice direct : this income statement reflects sales of 100000 mice. direct materials cost 5.00 per mouse direct labor was 1.00 per

Given that a normal distribution withnbspmu103 : given that a normal distribution withnbspmu103 andnbspsigma20 given that you select a sample of n25a. what is the

Suppose a computer chip manufacturer rejects 2 of the : suppose a computer chip manufacturer rejects 2 of the chips produced because they fail presale testing. whats the

Analysis of the us government budget deficit and net cost : analysis of the u.s. government budget deficit and net cost of operations. access the most recent financial report of

User Account

All Pages