Should penbirch continue to manufacture the motherboard

Assignment Help Managerial Accounting
Reference no: EM132754817

Penbirch Electronics manufactures most of the components that make up its products. A company has approached Penbirch offering to sell them A-12 Motherboards for $52 each, a component that they currently manufacture in-house. Cost information for an A-12 is given below:

Cost per Unit

Direct materials $ 17.50

Direct labour 12.75

Manufacturing overhead 28.75

Total cost per unit 59.00

The manufacturing overhead is made up of $14.50 per unit in variable costs and $14.25 in fixed cost allocations that will be assigned to other products if Penbirch accepts the offer.

Problem 1: Should Penbirch continue to manufacture the A-12 Motherboards or should they purchase them from the outside supplier?

Reference no: EM132754817

Questions Cloud

What is the corporate culture of quantum gaming : How effective was Samantha's approach in delivering the negative news? If you were in Samantha's situation, what approach would you have used to deliver the new
How does topic impact the way you interact : How does this topic impact the way you interact with others and family?
How do prepare income statement for shannon company : How do Prepare income statement for Shannon Company that uses the contribution format and is segmented by divisions. In addition, for the company as a whole
Explain the critical theories of gender : Topic: Explain the critical theories of gender. What is your stance on the critical theories of gender?
Should penbirch continue to manufacture the motherboard : Penbirch Electronics, Should Penbirch continue to manufacture the A-12 Motherboards or should they purchase them from the outside supplier?
Possible benefits of focusing on childhood : What are two (2) possible benefits of focusing on childhood as the time when emotional problems originate, and what are two (2) possible drawbacks?
Explain the different strategies for recruitment : Generate Best Practices for Recruitment and Selection Instructions Using this week's readings as a starting point, consider the challenges in recruiting.
Do most managers have the behavioral flexibility : Do most managers have the behavioral flexibility to move between different styles, or do they tend to apply just one or a limited range of approaches
Why is diversity important in the world : Why is diversity important in the world? What are the benefits?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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!

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