Question 10Cheyenne, 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 19,400 Tri-Robos is as follows. Cost Direct materials ($49 per robot) $950,600 Direct labor ($37 per robot) 717,800 Variable overhead ($6 per robot) 116,400 Allocated fixed overhead ($31 per robot) 600,000 Total $2,384,800 Cheyenne is approached by Tienh Inc., which offers to make Tri-Robo for $112 per unit or $2,172,800.Following are independent assumptions.

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 10

Cheyenne, 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 19,400 Tri-Robos is as follows.

		Cost
Direct materials ($49 per robot)		$950,600
Direct labor ($37 per robot)		717,800
Variable overhead ($6 per robot)		116,400
Allocated fixed overhead ($31 per robot)		600,000
Total		$2,384,800

Cheyenne is approached by Tienh Inc., which offers to make Tri-Robo for $112 per unit or $2,172,800.

Following are independent assumptions.

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