Ring Company makes telephones. Currently, Ring makes all components of the telephones in-house. An outside company has offered to supply one component, part number X76, for P12 each. Ring uses 22,000 of these components per year. Costs of X76 are as follows:    Direct materials, P3.00    Direct labor, P1.50    Variable overhead, P2.75    Fixed overhead, P5.00   Suppose that only 30% of the fixed overhead is unavoidable even if part X76 is not made by Ring. Should Ring purchase the part from the outside supplier? Group of answer choices A. No, income will decrease by P15,000 B. Yes, income will increase by P74,500 C. No, income will decrease by P71,500 D. Yes, income will increase by P10,500 E. No, income will decrease by P27,500 F. No, income will decrease by P10,500

Q: Beat Company manufactures 8,000 units of a certain component per year. This component is used in the…

A: Total relevant cost of production = (Direct materials + Direct materials x 2% + Direct labor +…

Q: Alibangbang Company produces 100,000 units of Part 34B, used in one of its snowblower engines, each…

A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…

Q: Each year, Basu Company produces 21,000 units of a component used in microwave ovens. An outside…

A: Formula: Differential cost = Making - Buying

Q: Manama Inc. is now producing TVs. The company’s accounting department reports the following costs of…

A: Make or buy decision-  The technique of marginal costing helps the management decide  whether to…

Q: Manor, Inc. currently manufactures 1,000 subcomponents per month in one of its factories. The unit…

A: The cheaper of the two buying options to be selected. Cost under option A = 1000 units * $170 per…

Q: Alibangbang Company produces 100,000 units of Part 34B, used in one of its snowblower engines, each…

A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…

Q: Andreasen Corporation manufactures thermostats for office buildings. The following is the cost of…

A: Lets understand the basics. When management have special order available then management try to…

Q: Great Company  manufactures  60,000  units  of  part  XL-40  each  year  for  use  on  its…

A: While making decisions, whether to manufacture a component or outsource it, the fixed cost has a…

Q: Motor Company manufactures 10,000 units of Part M-l each year for use in its production. The…

A: Answer with explanation are as follows

Q: ABC Manufacturing Corp. is using 10,000 units of part no. 300 as a component to assemble one of its…

A: Make or Buy decisions are referred to as taking decision regarding either to produce the product…

Q: Plummer Company makes 4,000 units per year of a part called an axial tap for use in one of its…

A: Formulas:

Q: Motor Company manufactures 10,000 units of Part M-I each year for use in its production. The…

A: Relevant cost to make = Direct materials + Direct labor + Variable manufacturing overhead +…

Q: Terminator, Inc., manufactures a motorcycle part in lots of250 units. The raw materials cost for the…

A: Inventory refers to the goods available for sale and raw materials which is used to produce goods in…

Q: How would i find the variable cost per unit?

A: Variable costs: Variable costs refers to those costs that change in proportion, with the change in…

Q: Abolt Corporation makes 40,000 units per year of a part it uses in the products it manufactures. The…

A: The question is based on the concept of Cost Accounting.

Q: he Haven Machine Company makes 40,000 screws to be used in the production of its washing machines.…

A: In this question, we have to compute that the company should buy or make the product.

Q: Toyang Inc. produces 100,000 units of Part 34B, used in one of its snowblowerengines, each year. An…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Benitez Company currently outsources a relay switch that is a component in one of its products. The…

A: A make-or-buy decision refers to an act of using cost-benefit to make a strategic choice between…

Q: Company X was recently approached by a supplier that would like to sell Company X a part. Company X…

A: Business entities either produce the goods themselves or purchase the goods from outside suppliers.…

Q: Wolley Inc. uses part A68 in one of its products. The company's Accounting Department reports the…

A: Lets understand the basics. When there is option between the buy and make then management calculate…

Q: ........................................................................................... 80…

A: No, La Salle, Inc. should not accept the offer of outside supplier since it they will have to incur…

Q: Bordome Company produces component A1 for use in one of its electronic gadgets. Normal annual…

A:

Q: Scott Corporation produces a part that is used in the production of one of its products.  The…

A: Solution Concept In a make or buy decision , the cost of making a product is compared to the cost of…

Q: Nisan is making over 45,000 cars per year and decided to manufacture and sell three comparable cars…

A: Total Over heads                                      =      £ 572,000 Total machine hours…

Q: Your Company uses a total of 15,000 units of a part that are produced and used every year. The…

A: Make cost is the cost of producing the product internally. Buy cost is the cost to purchase the…

Q: Sardi Incorporated is considering whether to continue to make a component or to buy it from an…

A: Manufacturing costs that vary roughly in response to shifts in production output are referred to as…

Q: Han Products manufactures 40,000 units of part S-6 each year for use on its production line. At this…

A: Make or buy decision involves financial analysis of production option in comparison with the…

Q: EIric Corporation currently manufactures a part in-house that is a main component of its most…

A: Calculation of Net advantage of Buying the product from outside market   Make  Amount   Buy…

Q: Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is…

A: Lets understand the basics. When management needs to choose between the make or buy, management…

Q: Manor, Inc. currently manufactures 1,200 subcomponents per month in one of its factories. The unit…

A: Given, Direct Materials       42 Direct Labour          84  Variable Cost          67 Fixed Cost…

Q: Alfanar Company produces a part used in the manufacture of one of its products. The unit product…

A: Solution: Relevant cost of making per unit = Direct material + direct labor + Variable Manufacturing…

Q: Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells…

A: Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the…

Q: Part S51 is used in one of Haberkorn Corporation's products. The company makes 12,000 units of this…

A: General company overheads (other than avoidable general overhead cost of $ 17,000) is a sunk cost…

Q: Ring Company makes telephones. Currently, Ring makes all components of the telephones in-house. An…

A: Total cost of a product includes both variable and fixed cost. Variable cost further includes direct…

Q: Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: San Pablo Machine Works had always made its components in-house. However, Silangan Company had…

A: Total purchase costs = purchase cost per unit x no. of units = 550*5300 units = 2915000

Q: Harcourt Manufacturing (HM) has the capacity to produce 11,800 fax machines per year. HM currently…

A: Variable cost means the cost which vary with level of output where as fixed cost remain fixed. In…

Q: Owly Corporation’s agriculture division currently produces their own soil mix to grow the plants…

A: Cost of Sale is the total cost of units produced & sold. It is the Sum of Prime Cost &…

Q: Hanson, Inc. makes 1,000 units per year of a part called a prositron for use in one of its products.…

A: This question deals with the question of decision making and relevant costing. In decision making,…

Q: Dexter Company manufactures part ZX used in several of its engine models. Monthly production costs…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: ABC Company makes 50,000 units per vear of a part it uses in the products it manufactures. The unit…

A: >Relevant cost for a decision is that cost that has a feature that makes it ‘relevant’ for the…

Q: Kramer Company, makes 3,000 units every year of a component called Axial Tap for use in one of its…

A: Hello. Since your question has multiple parts, we will solve first question  for you. If you want…

Q: Mervin Company produces circuit boards that sell for $8 per unit. It currently has capacity to…

A: 1.

Q: Temple, Inc. produces several models of docks. An outside supplier has offered to produce the…

A:

Q: Steve company produces 30000 units of parts each year for use on its production line.  The cost per…

A: Relevant cost of S6 per unit = Direct material cost + direct labor cost + variable manufacturing…

Q: Your Company uses a total of 13,000 units of a part that are produced and used every year. The…

A: PLEASE LIKE THE ANSWER   Answer=  decrease by $79,000 per year    Make  Buy  Direct…

Q: 1. What are the alternatives facing Zion Manufacturing with respect to  List the relevant costs for…

A: Make or Buy Decision Make or Buy decision is the action taken by a producer to either make/produce a…

Q: Estes Company has been manufacturing its own wheels for its scooters. The company is presently…

A: variable manufacturing overhead to production at the rate of =   30% of direct labor cost   Labor…