1 2 3 4 5 6 7 Direct materials Direct labor 8 Variable manufacturing overhead 9 Fixed manufacturing overhead, traceable 10 Fixed manufacturing overhead, common but allocated 11 Total cost 12 13 25 26 27 Alanco, Inc. manufactures a variety of products and is currently maunfacturing all of its own component parts. An outside supplier has offered to sell one of those components to Alanco. To evaluate this offer, the following information has been gathered relating to the cost of producing the component internally: 28 29 30 31 32 33 34 Supplier price Units used per year *The fixed manufacturing overhead, traceable Depreciation of equipment (no resale value) Supervisor salary 14 15 16 17 18 19 20 21 Required: 22 1. Assuming the company has no alternative use for the facilities now being used to produce the component, 23 complete the following analysis to determine if the outside supplier's offer should be accepted. 24 (Use cells A6 to 819 from the given information to complete this question. Blank or zero value answers should be entered as =0.) 39 40 $4.00 6.00 2.00 5.00 Cost of purchasing Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, common Total costs 8.00 $25.00 $21.00 12,000 30% 70% Per Unit Differential Make Cost Buy 35 36 37 2. Based on this analysis, determine if Alanco should make or buy the component. 38 Alanco should the component. 12,000 units Make Buy
1 2 3 4 5 6 7 Direct materials Direct labor 8 Variable manufacturing overhead 9 Fixed manufacturing overhead, traceable 10 Fixed manufacturing overhead, common but allocated 11 Total cost 12 13 25 26 27 Alanco, Inc. manufactures a variety of products and is currently maunfacturing all of its own component parts. An outside supplier has offered to sell one of those components to Alanco. To evaluate this offer, the following information has been gathered relating to the cost of producing the component internally: 28 29 30 31 32 33 34 Supplier price Units used per year *The fixed manufacturing overhead, traceable Depreciation of equipment (no resale value) Supervisor salary 14 15 16 17 18 19 20 21 Required: 22 1. Assuming the company has no alternative use for the facilities now being used to produce the component, 23 complete the following analysis to determine if the outside supplier's offer should be accepted. 24 (Use cells A6 to 819 from the given information to complete this question. Blank or zero value answers should be entered as =0.) 39 40 $4.00 6.00 2.00 5.00 Cost of purchasing Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, common Total costs 8.00 $25.00 $21.00 12,000 30% 70% Per Unit Differential Make Cost Buy 35 36 37 2. Based on this analysis, determine if Alanco should make or buy the component. 38 Alanco should the component. 12,000 units Make Buy
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter15: Ratio Analysis (ratioa)
Section: Chapter Questions
Problem 2R: The comparative financial statements of Global Technology are as follows: Open the file RATIOA from...
Related questions
Question
![1
2
3
4
5
6
7
8
9
27
28
29
30
31
32
A
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead, traceable*
Fixed manufacturing overhead, common but allocated
Total cost
Supplier price
Units used per year
* The fixed manufacturing overhead, traceable
Depreciation of equipment (no resale value)
Supervisor salary
Cost of purchasing
Direct materials
Direct labor
Variable manufacturing overhead
B
Fixed manufacturing overhead, traceable
Fixed manufacturing overhead, common
Total costs
Alanco, Inc. manufactures a variety of products and is currently maunfacturing all of its own component parts.
An outside supplier has offered to sell one of those components to Alanco. To evaluate this offer, the following information has been gathered relating to
the cost of producing the component internally:
$4.00
6.00
Alanco should
2.00
5.00
8.00
$25.00
10
11
12
13
14
15
16
17
18
19
20
21 Required:
22 1. Assuming the company has no alternative use for the facilities now being used to produce the component,
23
complete the following analysis to determine if the outside supplier's offer should be accepted.
24
25 (Use cells A6 to B19 from the given information to complete this question. Blank or zero value answers should be entered as =0.)
26
$21.00
12,000
C
30%
70%
Per Unit Differential
Cost
Make
Buy
33
34
35
36
37
2. Based on this analysis, determine if Alanco should make or buy the component.
38
39
40
D
E
the component.
F
G
12,000 units
Make
Buy
H
I
J
K
L
M
N
O
P
Q
S](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84be77e3-7e2a-48d9-923c-45508700aa71%2F54b6000f-13c2-429a-8a02-f103a0713f20%2Fw33ci5v_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1
2
3
4
5
6
7
8
9
27
28
29
30
31
32
A
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead, traceable*
Fixed manufacturing overhead, common but allocated
Total cost
Supplier price
Units used per year
* The fixed manufacturing overhead, traceable
Depreciation of equipment (no resale value)
Supervisor salary
Cost of purchasing
Direct materials
Direct labor
Variable manufacturing overhead
B
Fixed manufacturing overhead, traceable
Fixed manufacturing overhead, common
Total costs
Alanco, Inc. manufactures a variety of products and is currently maunfacturing all of its own component parts.
An outside supplier has offered to sell one of those components to Alanco. To evaluate this offer, the following information has been gathered relating to
the cost of producing the component internally:
$4.00
6.00
Alanco should
2.00
5.00
8.00
$25.00
10
11
12
13
14
15
16
17
18
19
20
21 Required:
22 1. Assuming the company has no alternative use for the facilities now being used to produce the component,
23
complete the following analysis to determine if the outside supplier's offer should be accepted.
24
25 (Use cells A6 to B19 from the given information to complete this question. Blank or zero value answers should be entered as =0.)
26
$21.00
12,000
C
30%
70%
Per Unit Differential
Cost
Make
Buy
33
34
35
36
37
2. Based on this analysis, determine if Alanco should make or buy the component.
38
39
40
D
E
the component.
F
G
12,000 units
Make
Buy
H
I
J
K
L
M
N
O
P
Q
S
![Alanco, Inc. manufactures a variety of products and is currently manufacturing all of its own component parts. An outside supplier has
offered to sell one of those components to Alanco. The Controller has asked you to help evaluate this offer to determine if the
company should make or buy the component.
Here are some tips for using Excel:
• Cell Reference: Allows you to refer to data from another cell in the worksheet. If you entered "=B5" into a blank cell, the formula
would output the value from cell B5.
Basic Math Functions: Allow you to use the basic math symbols to perform mathematical functions. You can use the following keys:
+ (plus sign to add), - (minus sign to subtract), * (asterisk sign to multiply), and / (forward slash to divide). For example, if you entered
"=B4+B5" in a blank cell, the formula would add the values from those cells and output the result.
●](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84be77e3-7e2a-48d9-923c-45508700aa71%2F54b6000f-13c2-429a-8a02-f103a0713f20%2F5agca3b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Alanco, Inc. manufactures a variety of products and is currently manufacturing all of its own component parts. An outside supplier has
offered to sell one of those components to Alanco. The Controller has asked you to help evaluate this offer to determine if the
company should make or buy the component.
Here are some tips for using Excel:
• Cell Reference: Allows you to refer to data from another cell in the worksheet. If you entered "=B5" into a blank cell, the formula
would output the value from cell B5.
Basic Math Functions: Allow you to use the basic math symbols to perform mathematical functions. You can use the following keys:
+ (plus sign to add), - (minus sign to subtract), * (asterisk sign to multiply), and / (forward slash to divide). For example, if you entered
"=B4+B5" in a blank cell, the formula would add the values from those cells and output the result.
●
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
![Pkg Acc Infor Systems MS VISIO CD](https://www.bartleby.com/isbn_cover_images/9781133935940/9781133935940_smallCoverImage.gif)
Pkg Acc Infor Systems MS VISIO CD
Finance
ISBN:
9781133935940
Author:
Ulric J. Gelinas
Publisher:
CENGAGE L
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
![Pkg Acc Infor Systems MS VISIO CD](https://www.bartleby.com/isbn_cover_images/9781133935940/9781133935940_smallCoverImage.gif)
Pkg Acc Infor Systems MS VISIO CD
Finance
ISBN:
9781133935940
Author:
Ulric J. Gelinas
Publisher:
CENGAGE L