Spahr company produces a part that is used in the

Assignment Help Accounting Basics

Reference no: EM13588805

Spahr Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 5,000 units, is shown in the table below. Erickson Company has offered to sell 5,000 units of the same part to Spahr Company for $11 per unit. Assuming the company has no other use for its facilities, what should Spahr Company do?

Direct materials	$2.00
Direct labor	$4.00
Variable manufacturing overhead	$2.00
Fixed manufacturing overhead	$4.00
Total cost	$12.00
The fixed overhead costs are unavoidable.

Reference no: EM13588805

Questions Cloud

A beaker containing 300ml of water at 20 clesius has a 150g : question a beaker containing 300ml of water at 20 clesius has a 150g piece of aluminum at 50 celsius placed in it. what

Conduct the test giving statistics the test statistic and : a company has developed a new deluxe aaa battery that is supposed to last longer than its regular aaa battery. however

Acceptance of the order would increase variable selling : johnson industries produces industrial computers for high-precision manufacturing. the following information is

Find the angular displacement of the tub during a spin of : question during the spin cycle of your clothes washer the tub rotates at a steady angular velocity of 34.7 rads. find

Spahr company produces a part that is used in the : spahr company produces a part that is used in the manufacture of one of its products. the unit manufacturing costs of

A toy car of mass 30 kg is stationary and a child rolls a : a toy car of mass 3.0 kg is stationary and a child rolls a truck of mass 3.5kg straight toward it with a speed of 7.0

Compute the net amount of deferred income taxes to be : presented below are two independent situations related to future taxable and deductible amounts resulting from

Consider an lc circuit with l340 henrys and c0180 farads : consider an lc circuit with l.340 henrys and c.0180 farads. the capacitor is initially charged to q 76.0 millicoulombs.

A 500 g mass hangs at the end of a 40 cm long string it is : a 500 g mass hangs at the end of a 40 cm long string. it is struck by a 250 g mass moving at 0.5 ms to the right.

User Account

All Pages