Roseboro, Inc. manufactures a part that is used in producing one of its products. The costs per unit to manufacture 10,000 units of this part are provided below. ROSEBORO, INC. COSTS PER UNIT TO MANUFACTURE PART USED IN Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Total Costs PRODUCTION $ 5.00 8.00 6.00 3.00 $ 22.00 The fixed manufacturing overhead costs are unavoidable. Roseboro has been approached by an outside company to make the part for them at a cost of $20 each. If the company purchased the part from the outside, it could use the facilities currently used to manufacture 10,000 units of another product that would provide a contribution margin of $4 per unit with no additional fixed costs incurred. Roseboro Company should: Make the part since the company will incur an additional cost of $10,000 if it buys the part.

Roseboro, Inc. manufactures a part that is used in producing one of its products. The costs per unit to manufacture 10,000 units of this part are provided below. ROSEBORO, INC. COSTS PER UNIT TO MANUFACTURE PART USED IN Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Total Costs PRODUCTION $ 5.00 8.00 6.00 3.00 $ 22.00 The fixed manufacturing overhead costs are unavoidable. Roseboro has been approached by an outside company to make the part for them at a cost of $20 each. If the company purchased the part from the outside, it could use the facilities currently used to manufacture 10,000 units of another product that would provide a contribution margin of $4 per unit with no additional fixed costs incurred. Roseboro Company should: Make the part since the company will incur an additional cost of $10,000 if it buys the part.

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Description: - Roseboro, Inc. manufactures a part that is used in producing one of its products. Thecosts per unit to manufacture 10,000 units of this part are provided below.ROSEBORO, INC.COSTS PER UNIT TO MANUFACTURE PART USED INDirect MaterialsDirect LaborVari

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...

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