User Account

All Pages

Should the company make or buy the component

Assignment Help Managerial Accounting
Reference no: EM133127811

Questions -

Q1. The internal manufacturing cost per unit of a component is as follows -

Direct Material $5.00

Direct Labour $10.00

Fixed costs $15.00

Total costs $30.00

(a) Given the information above, if the company buys the component, it would however have to pay $17.00, but would still have to meet its fixed cost. Should the company make or buy the component?

(b) Based on your answer in (a) above name two factors that can influence the company to buy the product.

Q2. (a) Describe two (2) methods for allocating support costs to departments.

(b) Explain why support costs are allocated to departments.

Reference no: EM133127811

Questions Cloud

What is the standard cost of goods sold : Budgeted Overhead: 700,000 (includes Budgeted VOH of 500,000) at normal capacity of 10,000 DL hours. What is the standard cost of goods sold
What amount should be recognized as termination benefit : The entity expects 20 employees to leave before closure and 100 employees to render service until closure. What amount should recognized as termination benefit
Determine the variable cost per machine hour : The company observed that at 22,000 machine hours of activity, Determine the variable cost per machine hour
Prepare a statement of retained earnings for the year ended : The share capital as at December 31, 2018, was $2,844 million: $347 million of preferred shares. Prepare a statement of retained earnings for the year ended
Should the company make or buy the component : Given the information above, if the company buys the component, it would however have to pay $17.00, Should the company make or buy the component
Apply the decision-making framework to this case study : Apply the decision-making framework to this case study - Huang is a registered nurse and has recently commenced employment in a regional South Australian town
What is the new value of your mortgage : If you currently owned a house that was valued at $1,000,000 with only a $200,000 morgage, what is the new value of your mortgage
Determine the amount of manufacturing overhead cost : Mansfield Technology incurred an actual total manufacturing overhead cost of $267,000. Determine the amount of manufacturing overhead cost
Consumer protection as relates to truthful advertising : What is the purpose of consumer protection as it relates to truthful advertising?

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!

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