User Account

All Pages

What the amount of differential cost increase or decrease

Assignment Help Managerial Accounting
Reference no: EM133055345

Question - Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $17.00 per unit. The unit cost for the business to make the part is $22.00, including fixed costs, and $11.00, not including fixed costs. If 34,607 units of the part are normally purchased during the year but could be manufactured using unused capacity, what the amount of differential cost increase or decrease from making the part rather than purchasing?

Reference no: EM133055345

Questions Cloud

How much cash and marketable securities does it hold : Airlux Antarctica has current assets of $410 million, current liabilities of $310 million. How much cash and marketable securities does it hold
Preventative measures contribute to healthy living : Describe how diet, physical activity, sleep, and preventative measures contribute to healthy living. Feel free to list examples of healthy living in your own li
Explain the important financial statements : Compare and contrast the three most important financial statements.
Benefit from using digital signatures : Suggest two types of organizations that would benefit from using digital signatures.
What the amount of differential cost increase or decrease : The unit cost for the business to make the part is $22.00, including fixed costs, and $11.00, What the amount of differential cost increase or decrease
Business value dashboard : What are the most important parts of this dashboard? Have real-time dashboards replaced the traditional business report? Justify your answer.
Prepare the necessary entries to correct the account : Accident insurance that would have covered the injury would have cost an additional P3,500. Prepare the necessary entries to correct the account
Development of sophisticated quality assurance systems : Identify, critically evaluate and select appropriate approaches to the development of sophisticated quality assurance systems in contemporary businesses
General dehumanize manage-rial activities : Some say that analytics in general dehumanize manage-rial activities, and others say they do not. Discuss arguments for both points of view.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Journalize the activities from these job cost sheets

Journalize the activities from these job cost sheets in the general journal. Also, journalize the other costs that occurred during this period.

  How the types of compensation schemes might cause

How these types of compensation schemes might cause managers to deviate from the stewardship role that is delegated to them by the shareholders

  Production and purchases budgets

Production and purchases budgets. Osage Inc. has actual sales for May and June and forecast sales for July, August, September, and October as follows:

  Give an explanation for the shortage

Donnie has made a 20 percent gross margin on his sales. Donnie thinks there may be some problem with the inventory. Evaluate the situation based on the historical gross profit percentage.

  What circumstances would the npv method work

Compare two methods, providing strengths and weaknesses. Further, under what circumstances would the NPV method work better than the IRR method?

  What would be abc co estimated cost of equity

What would be ABC Co's estimated cost of equity if it were to change its capital structure 40 percent debt and 60 percent equity?

  What type of benchmarking is the doveton plant planning

Explain the advantages non-financial performance measures offer for managing resources and creating value, compare with financial measures.

  Calculate the amount of depreciation

The company acquired, on January 1, 2020 equipment costing $60,000 with a salvage value of $12,000. Calculate the amount of depreciation for Year #3

  How salary paid to a corporate office secretary would be

How The salary paid to a corporate office secretary would be classified as a(n)?manufacturing overhead cost/administrative expense

  Make table that contains the standard labor-hour requirement

Make table that contains the standard labor-hour requirement per unit and standard direct labor cost per unit for the 4 months, October through January.

  Would it be profitable to eliminate scented and musical line

Jim warns Kathy that eliminating the scented and musical lines would lower the sales of the regular line by 20 percent. Given this information, would it be profitable to eliminate the scented and musical lines?

  Determine the incremental cost

If the alternative set-up was adopted, direct costs could have been $850,000. In addition, Mozart fixed costs were $100,000. Determine the incremental cost

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