Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows:Direct materialsDirect laborVariable overheadFixed overhe ad$48.0040.0037.0034 00$159.00TotalCrayola Technologies Inc. has contacted Rublum with an offer to sell 9000 of the subassemblies for $145.00 each. Rublum will eliminate$93,000 of fixed overhead if it accepts the proposal. What are the relevant costs for Rubium?$1,218,000$831,000$1,524,000$885,000

Relevant cost = (Direct material + direct labor + variable overhead) x no. of units + Avoidable…

Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials Direct labor Variable overhead Fixed overhead Total $48.00 40.00 37.00 34.00 $159 00 Crayola Technologies Inc. has contacted Rubium with an offer to sell 9000 of the subassemblies for $145.00 each. Rublum will eliminate $93,000 of fixed overhead if it accepts the proposal. What are the relevant costs for Rubium? $1,218,000 $831,000 $1,524,000 $885,000

Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials Direct labor Variable overhead Fixed overhead Total $48.00 40.00 37.00 34.00 $159 00 Crayola Technologies Inc. has contacted Rubium with an offer to sell 9000 of the subassemblies for $145.00 each. Rublum will eliminate $93,000 of fixed overhead if it accepts the proposal. What are the relevant costs for Rubium? $1,218,000 $831,000 $1,524,000 $885,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...

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