P3. (make or buy) Sam Company incurs the following costs in producing 10,000 covers. $20,000 Direct material costs Direct labor costs $50,000 $30,000 Variable manufacturing overhead Fixed manufacturing overhead Total manufactuirng costs $40,000 $140,000 Manuafacturing costs/unit-$100,000/10,000 units - $14 If Sam buys them, the purchasing cost would be $ 12/unit, and Sam has to assume $26,000 of fixed manufacturing overhead. Instruction) Prepare an analysis showing Sam should make or buy the covers. And provide a recommendation.
P3. (make or buy) Sam Company incurs the following costs in producing 10,000 covers. $20,000 Direct material costs Direct labor costs $50,000 $30,000 Variable manufacturing overhead Fixed manufacturing overhead Total manufactuirng costs $40,000 $140,000 Manuafacturing costs/unit-$100,000/10,000 units - $14 If Sam buys them, the purchasing cost would be $ 12/unit, and Sam has to assume $26,000 of fixed manufacturing overhead. Instruction) Prepare an analysis showing Sam should make or buy the covers. And provide a recommendation.
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...
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