ACC 212 Managerial Accounting - Chapter 13 HW - 01-04
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Chapter 13 HW 6 Submitted 30/30 Total points awarded Help Exit - You received partial credit in the previous attempt. 1 Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the parts for its engines, including the carburetors. An outside supplier offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $36 per unit. To evaluate this offer, Troy Engines, Limited, summarized the cost of producing the carburetor internally as follows: l?){:?s awarded Pe_r‘ 20,000 Units Per Unit Year Direct materials $ 17 $ 340,000 Scored Direct labor 10 200,000 Variable manufacturing overhead 2 40,000 Fixed manufacturing overhead, traceable 9* 180,000 Fixed manufacturing overhead, allocated 12 240,000 ) Total cost $56 $ 1,000,000 References *One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Required: -— . If the company has no alternative use for the facilities being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier? . Should the outside supplier’s offer be accepted? . Suppose if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new product with a segment margin of $200,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier? Given the new assumption in requirement 3, should the outside supplier’s offer be accepted? w N » Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Given the new assumption in requirement 3, should the outside supplier’s offer be accepted? Yes W& < Required 3 Required 4 >
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Related Questions
all parts of the question
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None
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i need help with 1 and 3 thanks appreciate it
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Please don't provide answer in image format thank you
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Question 3:
Each of the following situations is independent.
A. Vallis Inc. manufactures machine parts for military
an offer from another military subcontractor to provide 2.000 units of product ZR17 for
$120,000. If Vallis does not purchase these parts fi
continue to produce them in-house at the following
drones. The company is considering
'om the subcontractor, it must
costs:
Cosf
per Unit
$28
$18
$16
$4
Direct materials
Direct labour
Variable overhead
Allocated fixed overhead
Required:
a. Analyze the offer quantitatively to determine if Vallis should continue to manufacture
the component or outsource it.
b. Outline at least three qualitative considerations that Vallis should consider in this
decision. Why are these factors that you have outlined important?
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Answer Required Question No. 1 and no.2
Provide a complete solution Thank You
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step by step please. parts a-b
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Question 4
Mikey Motor Ltd., manufactures a variety of motorcycles. The company has always produced
all of the necessary parts for its motorcycles, including engines. An outside supplier has
offered to sell one type of engine to Mikey Motor Ltd., for a cost of $31 per unit. To evaluate
this offer, Mikey Motor Ltd., has garnered the following information relating to its own cost of
producing the engine internally:
Assuming the company has no alternative use for the facilities that are now being used to
produce the engines, what would be the financial advantage (disadvantage) of buying 10,000
engines from the outside supplier?
Direct Materials $15
Per Unit
Variable
manufacturing $4
overhead
Fixed
Direct Labor $10 $100,000
manufacturing
overhead,
traceable*
10,000 units
per year
$3
$150,000
$40,000
$30,000
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Subject :- Account
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3
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Question 3
Assume that HASF furniture Inc., as described, currently purchases the chair cushions for its lawn set from an outside vendor for $30 per set. Modern Furniture’s chief operations officer wants an analysis of the comparative costs of manufacturing these cushions to determine whether bringing the manufacturing in-house would save the firm money. Additional information shows that if Modern furniture’s were to manufacture the cushions, the materials cost would be $16 and the labor cost would be $10 per set and that it would have to purchase cutting and sewing equipment, which would add $25,000 to annual fixed costs.
NOTE: No need to enter comma between numbers
Required
Computation for 10,000 units
What amount should have been inccrued if company produce 10,000 units
What amount should have been inccrued if company purhcase 10,000 units from outside
What amount company save if company make 10,000 cushions
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Exercise 3 (Make or Buy a Component)
Cañada Inc., manufactures a variety of heating and air-conditioning units.
The company is currently manufacturing all of its own component parts. An
outside supplier has offered to sell a thermostat to Cañada for P200 per unit.
To evaluate this offer, Cañada, Inc., has gathered the following information
relating to its own cost of producing the thermostat internally:
15,000 Units
Year
Per
Unit
Р60
per
P 900,000
1,200,000
150,000
750,000
Direct materials.
Direct labor
80
Variable manufacturing overhead.
Fixed manufacturing overhead, traceable.
Fixed manufacturing overhead, common,
allocated...
10
50*
but
1,500,000
P4,500,000
100
Total cost...
P300
* 40% supervisory salaries; 60% depreciation of special equipment (no resale
value).
Required:
1. Assuming that the company has no alternative use for the facilities now
being used to produce the thermostat, should the outside supplier's offer
be accepted? Show all computations.
2. Suppose that if the…
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Q4
The Portland Company manufactures Part No. 498 for use in its production line. The manufacturing cost per unit for 20,000 units of Part No. 498 is as follows:
Direct materials $4
Variable direct manufacturing labor 22
Variable manufacturing overhead 17
Fixed manufacturing overhead allocated 20
Total manufacturing cost per unit $63
The Counter Company has offered to sell 20,000 units of Part No. 498 to Portland for $58 per unit. Portland will make the decision to buy the part from Counter if there is an overall savings of at least $20,000 for Portland. If Portland accepts Counter’s offer, $5 per unit of the fixed manufacturing overhead allocated would be eliminated. Furthermore, Portland has determined that the released facilities could be used to save relevant costs in the manufacture of Part No. 575.
For Portland to…
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stuck on letter c and d pls show complete solution tnx
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Please help me with show all calculation thanku
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aj.5
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Question 4
You are contemplating leaving your full-time employment to concentrate your ability on the marketing of a new low-energy portable heater. You have spoken to a group of manufacturers of similar product, and you have produced the following data based upon the production of 1200 heaters in the six months to December 31, 2021.
R R
Unit selling price 160
Less: Direct materials 50
Direct labour 30
Fixed Overheads:
Admin 4.00
Rent 7.50
Rates…
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Chapter 9 Section 4 Problem 2 (09.04-PR002) - use MACRS-GDS 7 year property
using excel to a answer the following.
Michelin is considering going “lights out” in the mixing area of the business that operates 24/7. Currently, personnel with a loaded cost of $600,000 per year are used to manually weigh real rubber, synthetic rubber, carbon black, oils, and other components prior to manual insertion in a Banbary mixer that provides a homogeneous blend of rubber for making tires (rubber products). New technology is available that has the reliability and consistency desired to equal or exceed the quality of blend now achieved manually. It requires an investment of $2.5 million, with $110,000 per year operational costs and will replace all of the manual effort described above. The planning horizon is 8 years and there will be a $300,000 salvage value at that time for the new technology. The income-tax rate is 25% and the after-tax MARR is 10%.
A. Determine the annual cost of purchasing the…
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show solution for required a b c d give complete solution
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Please provide Solutions with explanation of the question is correct option
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A-2
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A3
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Homwork Question 6
MSI is considering outsourcing the production of the handheld control module used with some of its products. The company has received a bid from Monte Legend Co. (MLC) to produce 10,000 units of the module per year for $16 each. The following information pertains to MSI’s production of the control modules: Direct materials $9Direct labor $4Variable manufacturing overhead $2Fixed manufacturing overhead $3Total cost per unit $18
MSI has determined that it could eliminate all variable costs if the control modules were produced externally, but none of the fixed overhead is avoidable. At this time, MSI has no specific use in mind for the space that is currently dedicated to the control module production.
1. Compute the difference in cost between making and buying the control module.
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Question 5
You are contemplating leaving your full-time employment to concentrate your ability on the marketing of a new low-energy portable heater. You have spoken to a group of manufacturers of similar product, and you have produced the following data based upon the production of 1200 heaters in the six months to December 31, 2021.
R R
Unit selling price 160
Less: Direct materials 50
Direct labour 30
Fixed Overheads:
Admin 4.00
Rent 7.50
Rates…
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!
Required information
Self-Study Problem 11-2 (Algo) The Make-vs.-Buy Decision
[The following information applies to the questions displayed below.]
Highvalu Incorporated manufactures a moderately priced set of lawn furniture (a table and four
chairs) that it sells for $320. The company currently manufactures and sells 7,900 sets per year. The
manufacturing costs include $104 for direct materials and $64 for direct labor per set. The overhead
charge per set is $54, which consists entirely of fixed costs.
Assume that Highvalu currently purchases the chair cushions for its lawn set from an outside vendor
for $21 per set. HighValu's chief operations officer wants an analysis of the comparative costs of
manufacturing these cushions to determine whether bringing the manufacturing in-house would
save the company money. Additional information shows that if HighValu were to manufacture the
cushions, the direct materials cost would be $8 and the direct labor cost would be $6 per set. In…
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want the correct answer please provide it
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X company currently buys a part...Accounting question
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Please do not give solution in image format thanku
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Help me please give the correct answer
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please solve part (iv) to part (v)
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Question 7
You are contemplating leaving your full-time employment to concentrate your ability on the marketing of a new low-energy portable heater. You have spoken to a group of manufacturers of similar product, and you have produced the following data based upon the production of 1200 heaters in the six months to December 31, 2021.
R R
Unit selling price 160
Less: Direct materials 50
Direct labour 30
Fixed Overheads:
Admin 4.00
Rent 7.50
Rates…
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mabled: Exam 5
Saved
Assume a company manufactures many products, one of which normally sells for $48 per unit. The company's accounting syster
cost for this product:
Direct materials
Direct labor
Manufacturing overhead
Total cost
Per Unit
$ 18
12
10
$ 40
The company estimates that $3 of its manufacturing overhead varies with respect to the number of units produced. The remainder
unaffected by the volume of units produced within the relevant range.
A customer has approached the company with an offer to buy 300 units of a customized version of the product mentioned above f
this order using existing manufacturing capacity. To accommodate the customer's desired product design, the company would incu
per unit of $3. It would also have to buy a special tool for $580 that has no other use or resale value after the special order is compl
this order will not have any effect on sales to other customers, what is the financial advantage (disadvantage) of accepting the speci
Multiple Choice
$(300)…
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show solution for letters A and b only
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Enter all three of the required questions (including 3a and 3b)
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Provide a successful correct answer
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- Please don't provide answer in image format thank youarrow_forwardQuestion 3: Each of the following situations is independent. A. Vallis Inc. manufactures machine parts for military an offer from another military subcontractor to provide 2.000 units of product ZR17 for $120,000. If Vallis does not purchase these parts fi continue to produce them in-house at the following drones. The company is considering 'om the subcontractor, it must costs: Cosf per Unit $28 $18 $16 $4 Direct materials Direct labour Variable overhead Allocated fixed overhead Required: a. Analyze the offer quantitatively to determine if Vallis should continue to manufacture the component or outsource it. b. Outline at least three qualitative considerations that Vallis should consider in this decision. Why are these factors that you have outlined important?arrow_forwardAnswer Required Question No. 1 and no.2 Provide a complete solution Thank Youarrow_forward
- step by step please. parts a-barrow_forwardQuestion 4 Mikey Motor Ltd., manufactures a variety of motorcycles. The company has always produced all of the necessary parts for its motorcycles, including engines. An outside supplier has offered to sell one type of engine to Mikey Motor Ltd., for a cost of $31 per unit. To evaluate this offer, Mikey Motor Ltd., has garnered the following information relating to its own cost of producing the engine internally: Assuming the company has no alternative use for the facilities that are now being used to produce the engines, what would be the financial advantage (disadvantage) of buying 10,000 engines from the outside supplier? Direct Materials $15 Per Unit Variable manufacturing $4 overhead Fixed Direct Labor $10 $100,000 manufacturing overhead, traceable* 10,000 units per year $3 $150,000 $40,000 $30,000arrow_forwardSubject :- Accountarrow_forward
- 3arrow_forwardQuestion 3 Assume that HASF furniture Inc., as described, currently purchases the chair cushions for its lawn set from an outside vendor for $30 per set. Modern Furniture’s chief operations officer wants an analysis of the comparative costs of manufacturing these cushions to determine whether bringing the manufacturing in-house would save the firm money. Additional information shows that if Modern furniture’s were to manufacture the cushions, the materials cost would be $16 and the labor cost would be $10 per set and that it would have to purchase cutting and sewing equipment, which would add $25,000 to annual fixed costs. NOTE: No need to enter comma between numbers Required Computation for 10,000 units What amount should have been inccrued if company produce 10,000 units What amount should have been inccrued if company purhcase 10,000 units from outside What amount company save if company make 10,000 cushionsarrow_forwardExercise 3 (Make or Buy a Component) Cañada Inc., manufactures a variety of heating and air-conditioning units. The company is currently manufacturing all of its own component parts. An outside supplier has offered to sell a thermostat to Cañada for P200 per unit. To evaluate this offer, Cañada, Inc., has gathered the following information relating to its own cost of producing the thermostat internally: 15,000 Units Year Per Unit Р60 per P 900,000 1,200,000 150,000 750,000 Direct materials. Direct labor 80 Variable manufacturing overhead. Fixed manufacturing overhead, traceable. Fixed manufacturing overhead, common, allocated... 10 50* but 1,500,000 P4,500,000 100 Total cost... P300 * 40% supervisory salaries; 60% depreciation of special equipment (no resale value). Required: 1. Assuming that the company has no alternative use for the facilities now being used to produce the thermostat, should the outside supplier's offer be accepted? Show all computations. 2. Suppose that if the…arrow_forward
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