User Account

All Pages

Should junior company buy the part externally

Assignment Help Managerial Accounting
Reference no: EM132663704

Junior Company currently buys 30,000 units of a part used to manufacture its product at R40 per unit Recently the supplier informed Junior Company that a 20% increase will take effect next year Junior has some additional space and could produce the units for the following per-unit costs (based on 30,000 units)

Direct materials R16

Direct labor Vanable overhead

Fixed overhead Total R50

If the units are purchased from the supplier, R200,000 of fixed costs will continue to be incurred  addition, the plant can be rented out for R20,000 per year if the parts are purchased externally

Required:

Problem 1: Should Junior Company buy the part externally or make it internally?

Reference no: EM132663704

Questions Cloud

Prepare a memo for the tax research files : Write a letter to Lloyd that contains your findings, and prepare a memo for the tax research files. Wonderful Wilderness's address is 100 Wilderness Way
How has the executive office of the president expanded : How has the Executive Office of the President expanded? What role did the Brownlow Committee play in this expansion? How many employees did the Executive.
Computer and internet security policy for organization : Your job is to develop a computer and internet security policy for the organization that covers the following areas:
Types of malware and describe their behaviors : Name two types of Malware and briefly describe their behaviors. what are the processes you could use to detect and remove malicious software in a system?
Should junior company buy the part externally : Should Junior Company buy the part externally or make it internally? Junior Company currently buys 30,000 units of a part used to manufacture
Explain the three aims of restorative justice : Explain the three aims of restorative justice. What role does the concept of Justice and Retribution play in a moral restorative justice strategy?
Security of internet of things : Describe what IoT is; what are some of the security risks and issues with IoT devices; what steps can be taken to mitigate these risks?
How many units jupiter will have to sell to show a profit : How many units Jupiter will have to sell to show a profit of $140,000, assuming the new technology is adopted. Compute Jupiter's new break-even point
Brute-force and buffer overflow : discuss a recent example on one of the following attacks: brute-force, buffer overflow, content spoofing, credential/session prediction, cross-site scripting,

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Analyse the companies financial performance

ACC80008 Managerial Accounting Assignment. Analyse the companies' 2015 and 2016 financial performance using appropriate financial measures

  Compute the direct materials cost and the direct labor cost

During May, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods.

  Calculate the average costs per unit

The company has just received a special one-time order for 2,500 trophies at $115 per trophy. Calculate average costs per unit

  Distinguish between cost and value

Distinguish between cost and value and explain their relative significance in accounting?

  Computing the net cash inflow anticipated from sale

Computing the net cash inflow (incremental contribution margin minus incremental fixed expenses) anticipated from sale of the device for each year

  Direct materials are added at the beginning

Braun Company produces its product through a single processing department. Direct materials are added at the beginning of the process.

  General ledger accounts related to inventory

Place Y (Yes) beside the general ledger accounts related to inventory in a job order cost system and N (No) by those that are not.

  Baker plumbing fixtures-target costing

uppose the company decides that only 1,400 units can be sold at a price of $5,000 and, therefore, the target cost cannot be reached. The company is considering. dropping the steam feature, which adds $600 of variable cost per unit. With this featu..

  How much total service department cost should be allocated

How much total service department cost should be allocated to Operating 2? How much total service department cost should be allocated to Operating 1?

  What is the average daily float for bungee jump corporation

Bungee Jump Corporation receives 100 checks totaling birr 80,000. These are delayed eight days on average. What is the average daily float?

  How much of the excess unit cost is traceable

How much of the $0.62 excess unit cost is traceable to apparent inefficient use of labor time? Excess of actual cost over standard cost per unit

  Why do consider that taxation authorities require

Why do you consider that taxation authorities require an international transfer price to be set based on an arm's length transaction?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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