what would be the amount of differential cost increase or decrease from making the part rather than purchasing it?

Q: A business is operating at 90% capacity and is currently purchasing a part which is being used in…

A: Number of units required = 30,000 Cost of purchasing per unit = 15 Variable cost of manufacturing…

Q: Explain whether both managers are justified in their arguments. How can the Components Division…

A: Transfer price is the price for goods and services, at which these are transferred between different…

Q: Magenta Company has a Components Division which currently manufactures 120,000 units of Part AAM but…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Midas Industries manufactures 20,000 components per year. The manufacturing cost of components was…

A: The fixed manufacturing overhead remains constant irrespective of units produced during the period.

Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…

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

Q: Every year Blue Industries manufactures 7,300 units of part 231 for use in its production cycle. The…

A: a) Compute the total relevant cost to make part 231:

Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…

A: Incremental cost = Incremental units×Variable cost per unit

Q: This year Burchard Company sold 40,000 units of its only product for $25 per unit. Manufacturing and…

A:

Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…

A: Incremental costs are always comprised of Variable costs . Total Variable cost in producing 100…

Q: Homestead Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000…

A: As we see that A and B parts are answered , so we are answering only C Part.

Q: Should Junior Company buy the part externally or make it internally?

A: Cost to the company when purchasing from supplier at 20% increased cost Cost per unit of the…

Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…

A: Total variable cost = direct material + direct labor  + variable MOH + Variable selling costs…

Q: Han Products manufactures 57,500 units of part S-6 each year for use on its production line. At this…

A: Part 1: Workings: Net dollar Advantage accepting the outside supplier's offer=$154,228.

Q: ABC Company has been manufacturing its own products. The company is currently operating at 100% of…

A: In case there are alternatives of making or buying, Then total costs at both the alternatives should…

Q: What is the minimum price per unit that would produce a positive contribution margin?

A: Contribution margin:   Contribution margin refers to the process or theory that is used to judge the…

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

A: Formula: Differential cost = ( Current purchasing price - Cost excluding fixed cost ) x Units…

Q: Carbondale Corporation is a manufacturer of converters sold on a private label basis to large…

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

Q: Han Products manufactures 55,500 units of part S-6 each year for use on its production line. At this…

A: SOLUTION- COMPUTATION OF RELEVANT COST PER UNIT- PARTICULARS AMOUNT DIRECT MATERIAL 6.660…

Q: A company has already incurred $5,000 of costs in producing 6,000 units of Product XY. Product XY…

A: Given: Current selling price = $15 Further processing cost = $8 Selling price after further…

Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…

A: Variable costs: These costs are incurred in conjunction to the volume of goods produced or sold. It…

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: What is the financial advantage (disadvantage) of accepting the outside supplier’s offer?

A: Its Necessary for every manufacturer to analyse whether they need to product internally or buy from…

Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…

A: Incremental Cost:-It is an increased difference producing two different types of units, like the…

Q: Han Products manufactures 28,000 units of part S-6 each year for use on its production line. At this…

A:

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

A: Make or Buy Decision making When Machine hours/Other production capacity is limited, then machine…

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

A: As posted multiple independent questions we are answering only first question kindly repost the…

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

A: Differential costs is the difference between costs of two alternatives. Costs and revenues should be…

Q: Mavs Incorporated produces and sells 30,000 units of Product X each month in one of their segments.…

A: Mavs Incorporated produces and sells 30,000 units of Product X each month in one of their segments.…

Q: Every year Riverbed Industries manufactures 7,300 units of part 231 for use in its production cycle.…

A: A make or buy decision is the act of choosing between whether to produce in-house or purchase from…

Q: [The following information applies to the questions displayed below.] Astro Company sold 22,500…

A: In order to determine the contribution margin per unit, the variable cost per unit are required to…

Q: [The following information applies to the questions displayed below.] Astro Company sold 22,500…

A: The contribution margin is calculated as difference between sales and variable costs.  The break…

Q: Should Junior Company buy the part externally or make it internally? Explain Why

A: Decision making required by the Junior company whether to purchase from outside or make it from…

Q: [The following information applies to the questions displayed below.] Astro Company sold 22,500…

A: The break even point is the point at which the total cost and total revenue are equal, which means…

Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…

A: Incremental Cost per unit  = Sum of Variable Cost / Units produced  Incremental Cost of additional…

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

A: Differential cost refers to the increase or decrease in the anticipated cost which is the result of…

Q: Cotton Corp. currently makes 12,500 subcomponents a year in one of its factories. The unit costs to…

A: Formulas:

Q: A business is operating at 90% capacity and is currently purchasing a part which is being used in…

A: Given information, A business is operating at 90% capacity Purchase cost = P15 Manufacturing cost…

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

A: Differential analysis (also called incremental analysis) is a management accounting technique in…

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: Han Products manufactures 55,500 units of part S-6 each year for use on its production line. At this…

A: Due to our policy, we can answer only first question. For rest answer , you need to post the…

Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…

A: Fixed cost remains constant at all levels of production. Only variable cost is taken for the…

Q: Tom's Toolery is operating at 70% of its productive capacity. It is currently paying $23 per unit…

A: Relevant cost per unit of making = unit-level production costs…

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

A: Sage company is operating at 90% of capacity Currently, a part is purchasing which is used in…

Q: Ahrends Corporation makes 70,000 units per year of a part it uses in the products it manufactures.…

A: Avoidable fixed manufacturing overhead = total fixed manufacturing overhead - applied fixed…

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

A: Formulas: Differential cost = Units*(Manufacturing cost - Variable cost of making)

Q: Every year Blue Industries manufactures 7,300 units of part 231 for use in its production cycle. The…

A: Relevant costs: These are the costs a business computes to decide whether to continue or close a…

Q: AlphaBrona Industries manufactures 50,000 components per year. The manufacturing cost of the…

A: Make or Buy: In this type of sum, we have to compare the cost of manufacturing the product with the…