obs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 20,400 Tri-Robos is as follows. Cost Direct materials ($51 per robot) $1,040,400 Direct labor ($39 per robot) 795,600 Variable overhead ($7 per robot) 142,800 Allocated fixed overhead ($29 per robot) 600,000 Total $2,578,800 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $116 per unit or $2,366,400. Following are independent assumptions. Assume that $405,000 of the fixed overhead cost can be avoided. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Make Buy Net Income Increase (Decrease) Direct materials $enter a dollar amount $enter a dollar amount $enter a dollar amount Direct labor enter a dollar amount enter a dollar amount enter a dollar amount Variable overhead enter a dollar amount enter a dollar amount enter a dollar amount Fixed overhead enter a dollar amount enter a dollar amount enter a dollar amount Purchase price enter a dollar amount enter a dollar amount enter a dollar amount Total annual cost $enter a total amount for this column $enter a total amount for this column $enter a total amount for this column Using incremental analysis, determine whether Jobs should accept this offer. The offer select an option . eTextbook and Media Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Jobs can use the released productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Make Buy Net Income Increase (Decrease) Direct materials $enter a dollar amount $enter a dollar amount $enter a dollar amount Direct labor enter a dollar amount enter a dollar amount enter a dollar amount Variable overhead enter a dollar amount enter a dollar amount enter a dollar amount Fixed overhead enter a dollar amount enter a dollar amount enter a dollar amount Opportunity cost enter a dollar amount enter a dollar amount enter a dollar amount Purchase price enter a dollar amount enter a dollar amount enter a dollar amount Totals $enter a total amount for this column $enter a total amount for this column $enter a total amount for this column Based on the above assumptions, indicate whether the offer should be accepted or rejected? The offer select an option .

obs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 20,400 Tri-Robos is as follows. Cost Direct materials ($51 per robot) $1,040,400 Direct labor ($39 per robot) 795,600 Variable overhead ($7 per robot) 142,800 Allocated fixed overhead ($29 per robot) 600,000 Total $2,578,800 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $116 per unit or $2,366,400. Following are independent assumptions. Assume that $405,000 of the fixed overhead cost can be avoided. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Make Buy Net Income Increase (Decrease) Direct materials $enter a dollar amount $enter a dollar amount $enter a dollar amount Direct labor enter a dollar amount enter a dollar amount enter a dollar amount Variable overhead enter a dollar amount enter a dollar amount enter a dollar amount Fixed overhead enter a dollar amount enter a dollar amount enter a dollar amount Purchase price enter a dollar amount enter a dollar amount enter a dollar amount Total annual cost $enter a total amount for this column $enter a total amount for this column $enter a total amount for this column Using incremental analysis, determine whether Jobs should accept this offer. The offer select an option . eTextbook and Media Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Jobs can use the released productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Make Buy Net Income Increase (Decrease) Direct materials $enter a dollar amount $enter a dollar amount $enter a dollar amount Direct labor enter a dollar amount enter a dollar amount enter a dollar amount Variable overhead enter a dollar amount enter a dollar amount enter a dollar amount Fixed overhead enter a dollar amount enter a dollar amount enter a dollar amount Opportunity cost enter a dollar amount enter a dollar amount enter a dollar amount Purchase price enter a dollar amount enter a dollar amount enter a dollar amount Totals $enter a total amount for this column $enter a total amount for this column $enter a total amount for this column Based on the above assumptions, indicate whether the offer should be accepted or rejected? The offer select an option .

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 2MC: TyeDye Lights makes two products: Party and Holiday. It takes 80,900 direct labor hours to...

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eTextbook and Media

Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Jobs can use the released productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

	Make	Buy	Net Income Increase (Decrease)
Direct materials	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount
Direct labor	enter a dollar amount	enter a dollar amount	enter a dollar amount
Variable overhead	enter a dollar amount	enter a dollar amount	enter a dollar amount
Fixed overhead	enter a dollar amount	enter a dollar amount	enter a dollar amount
Opportunity cost	enter a dollar amount	enter a dollar amount	enter a dollar amount
Purchase price	enter a dollar amount	enter a dollar amount	enter a dollar amount
Totals	$enter a total amount for this column	$enter a total amount for this column	$enter a total amount for this column

Based on the above assumptions, indicate whether the offer should be accepted or rejected?

The offer select an option .

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		Cost
Direct materials ($51 per robot)		$1,040,400
Direct labor ($39 per robot)		795,600
Variable overhead ($7 per robot)		142,800
Allocated fixed overhead ($29 per robot)		600,000
Total		$2,578,800