123456789272829303132ADirect materialsDirect laborVariable manufacturing overheadFixed manufacturing overhead, traceable*Fixed manufacturing overhead, common but allocatedTotal costSupplier priceUnits used per year* The fixed manufacturing overhead, traceableDepreciation of equipment (no resale value)Supervisor salaryCost of purchasingDirect materialsDirect laborVariable manufacturing overheadBFixed manufacturing overhead, traceableFixed manufacturing overhead, commonTotal costsAlanco, 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 tothe cost of producing the component internally:$4.006.00Alanco should2.005.008.00$25.00101112131415161718192021 Required:22 1. Assuming the company has no alternative use for the facilities now being used to produce the component,23complete the following analysis to determine if the outside supplier's offer should be accepted.2425 (Use cells A6 to B19 from the given information to complete this question. Blank or zero value answers should be entered as =0.)26$21.0012,000C30%70%Per Unit DifferentialCostMakeBuy33343536372. Based on this analysis, determine if Alanco should make or buy the component.383940DEthe component.FG12,000 unitsMakeBuyHIJKLMNOPQS Alanco, Inc. manufactures a variety of products and is currently manufacturing all of its own component parts. An outside supplier hasoffered to sell one of those components to Alanco. The Controller has asked you to help evaluate this offer to determine if thecompany 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 formulawould 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.●

Make or buy is the decision-making analysis that helps the entity decide whether the goods should be…

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

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...