Waterway Industries incurs the following costs to produce 10600 units of a subcomponent: Direct materials $8904 Direct labor 11978 Variable overhead 13356 Fixed overhead 16200 An outside supplier has offered to sell Waterway the subcomponent for $2.85 a unit. If Waterway accepts the offer, by how much will net income increase (decrease)? a. $(3074) b. $(9328) c. $4028 d. $20228

Q: Assume a company is considering buying 10,000 units of a component part rather than making them. A…

A: Financial advantage (disadvantage) of buying from the suppliers = Total relevant costs - Total…

Q: NUBD Corporation has the following standard costs associated with the manufacture and sale of one of…

A: Working note: Computation of cost of goods sold:

Q: Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, sell…

A: Solution 1:     Regular Selling price  $51.00   Less: Discount  16%   Selling price for…

Q: Bairstow Company manufactures and sells a single product. The following costs were incurred during…

A: Introduction: Variable costing is a concept used in management and cost accounting that excludes…

Q: 1.) A company receives a special order for 200 units that requires stamping the buyer's name on each…

A: A company may receive a special order for certain units. These units are likely to require some sort…

Q: Assume that a company makes 30,000 units of Part A each year. At this level of production, the…

A: Formula: Financial advantage (disadvantage) of buying the parts from the outside supplier =…

Q: Polaski Company manufactures and sells a single product called a Ret. Operating at capacity,. the…

A: Solution 1:     Regular Selling price  $53.00   Less: Discount  16%   Selling price for…

Q: Alpha Company produces 1 000 units of Part X per month. The total manufacturing costs of the part…

A: In this question, we have to find out the effect on monthly operatin

Q: Toys R Us Company had the following unit costs: Direct materials $20 Direct labor 10 Variable…

A: Additional profit (loss) = (Special selling price per unit - Relevant cost per unit) x no. of units…

Q: Martin Company incurred the following costs for 70,000 units: Variable costs $420,000 Fixed costs…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Coronado Industries incurs the following costs to produce 8600 units of a subcomponent: $7224 Direct…

A: A technique which is used when the decision regarding choosing one of the alternatives is to be…

Q: 1. After several years producing and selling at a capacity of 50,000 units, Milton Company faced a…

A: Answer 1:   Variable manufacturing costs:Direct materials…

Q: The Mixed Products Company sells one of its products for $180 per unit.  The Company incurs the…

A: Fixed manufacturing overhead is not relevant cost as it will remains same if accept a one-time only…

Q: 2. Kurt Corporation manufactures a propeller. Shown below is Kurt's cost structure Variable cost per…

A: Absorption costing is an approach of calculating the total cost of a product under which all the…

Q: Green Thumb makes small plant stands that sell for P25 each. The company's annual level of…

A: Hi student Since there are multiple subparts, we will answer only three subparts 4,5 and 6.

Q: 1. Calculate the activity rates for each of the overhead items using the four cost drivers.  2.…

A: 1) workings:

Q: SBD Phone Company sells its waterproof phone case for $109 per unit. Fixed costs total $257,000, and…

A: Number of units to be sold for earning desired income means how many units needs to be sold for…

Q: 5,000. which normally sells for P35 per unit. Costs associated with the manager has received a…

A:

Q: Rafael sells a product for £2530 per unit. The fixed overhead cost is £525,000 with Labour Cost of…

A: Selling Price per unit = 2530 Fixed Overhead Cost = 525000 Labor Cost per unit = 179 Material Cost…

Q: ikTok Electronics manufactures an aluminium fibre tripod model “TRI-X” which sells for $1,600. The…

A: 1- The table below shows the formulas used for the purpose of calculation: The results of the…

Q: Sage Company is operating at 90% of capacity and is currently purchasing a part used in its…

A: Increase (decrease) in cost = (Variable cost per unit - Purchase cost per unit) x no. of units

Q: Clemente Inc. incurs the following costs to produce 10,000 units of a subcomponent: Direct…

A: MAKE OR BUY DECISION INVOLVES WHETHER TO MANUFACTURE A PRODUCT IN - HOUSE OR TO PURCHASE IT FROM A…

Q: Total fixed costs for Randolph Manufacturing are $784,000. Total costs, including both fixed and…

A: Fixed cost:It is the cost that would not change with an increase or decrease in the number of goods…

Q: M&S Company incurs the following costs to produce 10,000 units of a subassembly part: Direct…

A: Relevant cost per unit = Direct materials + direct labor + variable overhead = OMR 0.84+1.125+1.26 =…

Q: Special order, short-run pricing. Diamond Corporation produces baseball bats for kids that it sells…

A: 1.

Q: TikTok Electronics manufactures an aluminium fibre tripod model “TRI-X” which sells for $1,600. The…

A: 1) Activity Cost Pools Cost Drivers EstimatedOverhead (A) Expected Use ofCost Drivers (B)…

Q: M&S Company incurs the following costs to produce 10,000 units of a subassembly part: Direct…

A: Variable cost if company Produces the component = Direct Material+Direct Labour+ Variable Overhead…

Q: WT. Ginsburg Engine Company manufactures part ACT31107 used in several of its engine models. Monthly…

A: Introduction: Operating income, also known as income from operations. It is calculated by deducting…

Q: Lagle Corporation has provided the following information:   Cost per Unit   Cost per Period Direct…

A: Period cost is the cost incurred other than the product cost. The product cost includes costs like…

Q: Vaughn Manufacturing incurs the following costs to produce 10,400 units of a subcomponent: Cost…

A: Solution Production- Direct material  8736 Direct labor 11752 Variable overhead  13104…

Q: Hattie Company has been purchasing 40,000 units of component, Part A25 for $38.40 per unit. Hattie…

A: Under differential analysis, cost under both the options are evaluated and compared to select the…

Q: Pillar Company expects to incur the following costs at the planned production level of 10,000 units:…

A: Variable cost per unit=Direct material+Direct labor+Variable overheadProduction units=P 100,000+P…

Q: San Clemente Inc. incurs the following costs to produce 10,000 units of a subcomponent: Direct…

A: For evaluation of Make or Buy decision, relevant costs of making the component will be compared with…

Q: NUBD Corporation has the following standard costs associated with the manufacture and sale of one of…

A: Volume variance under absorption costing = Budgeted Fixed overhead - Applied overhead  where,…

Q: What is the product unit cost under Absorption costing? 2.70 270,000 3.00 2.20 None of the above

A: Absorption Costing :— it is an marginal accounting method which considered all Costs related to…

Q: u. P20,000 ABC Inc. manufactures industrial components. One of its products, which is used in the…

A: Correct option is b. P30    P30 is the minimum price per unit on the special order below which the…

Q: Green Thumb makes small plant stands that sell for P25 each. The company's annual level of…

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

Q: ABC Company incurs the following costs in producing 25,000 units of product: Direct materials…

A: If company decides to produce product, the cost per unit is as follows Direct Material =…

Q: Mine Company produced 1,000 units of a product at a selling price of P95.00 each. Direct materials…

A: Solution..     Variable cost are the cost which change proportionally with the Change in production…

Q: SixthZ incurred the following costs during 2018: Variable costs treehouse Manufacturing: Direct…

A: Variable Costing refers to a method of Costing where only Variable costs are considered at the time…

Q: Adams Furniture receives a special order for 10 sofas for a special price of $6,000. The direct…

A: Opportunity cost per unit=Regular selling price per unit-Variable cost per unit

Q: If the special order is accepted, the effect on operating income would be a

A: Special order pricing: Special order pricing is a marginal decision made by the company to determine…

Q: Sony Company incurred a fixed cost of RO 3200 for manufacturing Television. The cost of raw material…

A: Total variable cost per unit = Raw material + cost of labour + cost of overhead = RO 24 + 8 + 3 = RO…

Q: NUBD Company began its operations on January 1, 2021 and produces a single product that sells for P7…

A: Solution: Unit cost under absorption costing = Direct material + direct labor + variable factory…

Q: M&S Company incurs the following costs to produce 10,000 units of a subassembly part: Direct…

A: Net income: A net income or earning of a business during its accounting period is called net income.…

Q: Al Maha Co. produces 1,200 units of petroleum with direct materials costs of OMR 32,000, Direct…

A: In accountancy, product cost generally includes direct material cost, direct labor cost, and…

Q: TikTok Electronics manufactures an aluminium fibre tripod model “TRI-X” which sells for$1,600. The…

A: ABC (Activity based costing) framework was created to manage the drawbacks of customary costing…

Q: SBD Phone Company sells its waterproof phone case for $112 per unit. Fixed costs total $172,000, and…

A: Contribution margin is a product's price minus all associated variable costs, resulting in the…