Al Maha Co. produces 1,200 units of petroleum with direct materials costs of OMR 32,000, Direct Labor costs of OF 12,000, Variable Overhead costs of OMR 25,000 and Fixed Overhead costs of OMR 22,000. Oman oil Co. offers to produce the units of petroleum at OMR 72 per unit. (Make or Buy Decision) The cost to make the petroleum is: Select one: O a. None of the answers are correct O b. 80,000 O c. 69,000 O d. 84,000 O e. 12,0000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 6PA: Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A...
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Al Maha Co. produces 1,200 units of petroleum with direct materials costs of OMR 32,000, Direct Labor costs of OMR
12,000, Variable Overhead costs of OMR 25,000 and Fixed Overhead costs of OMR 22,000. Oman oil Co. offers to
produce the units of petroleum at OMR 72 per unit. (Make or Buy Decision) The cost to make the petroleum is:
Select one:
O a. None of the answers are correct
O b. 80,000
O c. 69,000
O d. 84,000
O e. 12,0000
ENG
07:35
INTL
25/05/2021
Transcribed Image Text:Al Maha Co. produces 1,200 units of petroleum with direct materials costs of OMR 32,000, Direct Labor costs of OMR 12,000, Variable Overhead costs of OMR 25,000 and Fixed Overhead costs of OMR 22,000. Oman oil Co. offers to produce the units of petroleum at OMR 72 per unit. (Make or Buy Decision) The cost to make the petroleum is: Select one: O a. None of the answers are correct O b. 80,000 O c. 69,000 O d. 84,000 O e. 12,0000 ENG 07:35 INTL 25/05/2021
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