FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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(a2)
Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Jobs can use the
released productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative sign
preceding the number e.g. -45 or parentheses eg. (45).)
Direct materials
Direct labor
Variable overhead
Fixed overhead
Opportunity cost
Purchase price
Totals
Make
The offer
GA
Buy
CLASS
Based on the above assumptions, indicate whether the offer should be accepted or rejected?
Net Income
Increase
(Decrease)
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Transcribed Image Text:(a2) Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Jobs can use the released productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45).) Direct materials Direct labor Variable overhead Fixed overhead Opportunity cost Purchase price Totals Make The offer GA Buy CLASS Based on the above assumptions, indicate whether the offer should be accepted or rejected? Net Income Increase (Decrease)
Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and
then transmit this information to a smartphone. The cost structure to manufacture 20,700 Tri-Robos is as follows.
Direct materials ($49 per robot)
Direct labor ($42 per robot)
Variable overhead ($5 per robot)
Allocated fixed overhead ($29 per robot)
Total
Cost
$1,014,300
869,400
103,500
600,300
$2,587,500
Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $115 per unit or $2,380,500.
Following are independent assumptions.
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Transcribed Image Text:Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 20,700 Tri-Robos is as follows. Direct materials ($49 per robot) Direct labor ($42 per robot) Variable overhead ($5 per robot) Allocated fixed overhead ($29 per robot) Total Cost $1,014,300 869,400 103,500 600,300 $2,587,500 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $115 per unit or $2,380,500. Following are independent assumptions.
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