User Account

All Pages

Exercise I do not understand, Cost Accounting

Assignment Help:
what would your answer be to the following problem, please show detailed calculations:
The XYZ Company manufacturers Part 123 for use in its production line. The manufacturering cost per unit for 20,000 units of Part 123 is as follows:
Direct Material $6, Direct manufacturing labor $30, Variable manufacturing overhead $12, Fixed manufacturing overhead allocated $16; Total manufacturing cost per unit $64.
The ABC Company has offered to sell 20,000 units of Part 123 to XYZ for $60 per unit. XYZ will make a decision to buy the part from ABC if there is an overall savings of at least $25,000 for XYZ. If XYZ accepts ABC''s offer, $9 per unit of the fixed overhead allocated would be eiliminated. Furthermore, XYZ has determined that the released facilities could be used to save relevant costs in the manufacture of Part 987. For XYZ to achieve an overall savings of $25,000, the amount of revelant costs that would have to be saved by using the released facilties in the manufacturer of Part 987 would be (choose one): (1)$140,000; (2)$125,000; (3)$85,000; (4)$80,000?

Thank You
Michael

Related Discussions:- Exercise I do not understand

Example of methods of allocating service costs, Example of Methods of Alloc...

Example of Methods of Allocating Service Costs Suppose the following data: User department Unit of Service Provided Costs Prior to Service Dep

Semi variable costs, Semi Variable Costs Are costs along with both a f...

Semi Variable Costs Are costs along with both a fixed and variable cost component? The fixed component is such portion that is constant irrespective of the level of activity.

Determine sales revenue and net income, Students will prepare a Comprehensi...

Students will prepare a Comprehensive Master Budget and Budgeted Financial Statements for Earrings Unlimited for the three-month period ending June 30. This includes: Sales Budg

calculate raw materials inventory value , Tony Allan Inc is a small manufa...

Tony Allan Inc is a small manufacturer of metal products in Toronto.  The company rents its factory building.  It uses a job order costing system because it has a wide variety of p

Exercise I do not understand, what would your answer be to the following pr...

what would your answer be to the following problem, please show detailed calculations: The XYZ Company manufacturers Part 123 for use in its production line. The manufacturering co

Cost sheet, Marple Associates is a consulting firm that specializes in info...

Marple Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two offices-one in Houston and one in Dallas

Explain stock valuation, G. Mills was appointed a local agent for the High ...

G. Mills was appointed a local agent for the High Power Mobile Workshop Bolt (HPMW-B) on 1 April 2009. The HPMW-B is manufactured by Mobile Equipment Ltd (MEL). The company charges

Account analysis method of cost estimation, Account Analysis Method of Cost...

Account Analysis Method of Cost Estimation By Utilizing account analysis, the accountant classifies and examines each ledger account like variable mixed or fixed. Into their v

Tax depreciation affect the cash flows statement?, What type of activity co...

What type of activity could a company engage in to improve their cash flows in their Cash Flows Statement? Is this ethical? Could borrowing money make the cash from operations be

Compute the total amount of current assets, Balance Sheet Classi?cations an...

Balance Sheet Classi?cations and Relationships: Shelley and Co. has the following balance sheet elements as of December 31, 2012. Land. . . . . . . . . . . . . . . . . . . . . .

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

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