User Account

All Pages

What is the total fixed manufacturing overhead

Assignment Help Accounting Basics
Reference no: EM132853617

Question - Bernard Company manufactures 20,000 units of part A8 each year for use on its production line. The cost per unit of A8 is as follows:

Direct materials $2.40

Direct manufacturing labor 3.50

Variable manufacturing overhead 1.60

Fixed manufacturing overhead 5.00

Total cost per part $12.50

An outside supplier has offered to sell 20,000 units of part A8 each year to Bernard Company for $14.25 per part. If Bernard Company accepts this offer, the facilities now being used to manufacture part A8 could be rented to another company at an annual rental of $75,000. However, Bernard Company has determined that $3.00 of fixed manufacturing overhead allocated to part A8 would continue even if part A8 were purchased from an outside supplier. Bernard's direct manufacturing labor consists of temporary help. Thus, Bernard can hire and dismiss those workers at will.

Required - What is the total fixed manufacturing overhead if Bernard Company manufactures 20,000 units of part A8? How much of the total fixed manufacturing overhead is avoidable if Bernard decides to buy the A8? How much of the total fixed manufacturing overhead is unavoidable if Bernard decides to buy the A8?

Reference no: EM132853617

Questions Cloud

National professional development model : How do the requirements for your department or one in your area compare to the National Professional Development model?
Consequences of ethical leadership in an organization : Can you explain some of the managerial implications and/or consequences of ethical leadership in an organization?
Sign of hrm influence or of mistrust of hrm specialists : Is a high level of assignment of HRM responsibilities to line managers a sign of HRM influence or of mistrust of HRM specialists? Give your opinion
What is their yield to call : The price of the bonds is $1,100. The bonds are callable in 5 years at a call price of $1050. What is their yeild to maturity? What is their yield to call
What is the total fixed manufacturing overhead : An outside supplier has offered to sell 20,000 units of part A8 each year to Bernard Company for $14.25 per part. What is the total fixed manufacturing overhead
Discuss the concepts of assessing the climate for change : Making the decision to institute change is a critical component of running a business.
What is the carrying value of the bonds on December : The proceeds from the bonds are $16216875. Using straight-line amortization, what is the carrying value of the bonds on December 31, 2021
What is the expected rate of return of the market index : If the expected rate of return of the U.S. government T-bill is 0.03, what is the expected rate of return of the market index
Provide the market share variance : Your Company is part of a large industry. The industry had sales volume of 206 million units last quarter. Provide the market share variance

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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