Sardi Incorporated is considering whether to continue to make a component or to buy it from a each year. The unit product cost of the component according to the company's cost accounting Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $ 8.20 8.30 1.20 4.30 $ 22.00 Assume that direct labor is a variable cost. Of the fixed manufacturing overhead, 70% is avoidal addition, making the component uses 2 minutes on the machine that is the company's current

Werner Company produces and sells disposable foil baking pans to retailers for $2.65 per pan. The variable cost per pan is as follows: Direct materials Direct labor Variable factory overhead Variable selling expense Fixed manufacturing cost totals $143,704 per year. Administrative cost (all fixed) totals $19,596. Required: $0.27 0.51 0.69 0.18 Compute the number of pans that must be sold for Werner to break even. pans Conceptual Connection: What is the unit variable cost? What is the unit variable manufacturing cost? Round your answers to the nearest cent. Unit variable cost Unit variable manufacturing cost Which is used in cost-volume-profit analysis? Unit variable cost ✓ How many pans must be sold for Werner to earn operating income of $7,000? pans How much sales revenue must Werner have to earn operating income of $7,000?

You make widgets, which is a subassembly for you main product of whatsup.  An outside vendor  has provided you with a quote to supply the widget part for    $          72.00 per unit Your cost records show the following:         Your projected production for the widget is              12,500 units   Item of Cost Per Unit Cost       Direct Material $18.75       Direct Labor $38.00       Variable manufacturing overhead $9.25       Lease on manufacturing facility $36,000.00 per year     Depreciation of equipment  $2.50       Allocated Corporate Expenses $1.25                  If this offer is accepted, you can sublease the manufacturing facility for $15,000 per year All direct and variable costs can be avoided.  The equipment has no salvage value   How much would net operating income be changed if the outside supplier offer was accepted? Show all calculations for full credit

Calculate the original overhead absorption rate   Southpeak plc manufactures two products, Alflon and Bur, in one of its factories. Product Alflon is a high-volume item, sales of which are 15,000 units each year, while Product Bur is a low-volume item, sales of which are only 8,000 units a year. Alflon products require two direct labour hours, and the Bur products require four direct labour hours per unit, which are currently used as the basis for assigning overhead cost to the products. The company’s overhead costs total $1,070,450 each year. Unit selling prices, costs for materials and labour in the factory of the two products are as follows:     Product Alflon ($) Product Bur ($) Selling Price 89 115 Direct Labour (at $10 per hour) 20 40 Direct Materials 15 15

Zion Manufacturing had always made its components in-house. However, Bryce Component Works had recently offered to supply one component, K2, at a price of $13 each. Zion uses 4,400 units of Component K2 each year. The cost per unit of this component is as follows: Direct materials Direct labor Variable overhead Fixed overhead Total $7.84 2.84 1.67 4.00 $16.35 The fixed overhead is an allocated expense; none of it would be eliminated if production of Component K2 stopped. Required: 1. What are the alternatives facing Zion Manufacturing with respect to production of Component K2? 2. List the relevant costs for each alternative. If required, round your answers to the nearest cent. Total Relevant Cost Make per unit Buy per unit Differential Cost to Make per unit

Frannie Fans currently manufactures ceiling fans that include remotes to operate them. The current cost to manufacture 10,320 remotes is as follows: Direct materials Direct labor Variable overhead Fixed overhead Total Cost $ 67,080 $ 56,760 $ 30,960 $ 51,600 $ 206,400 Frannie is approached by Lincoln Company, which offers to make the remotes for $18 per unit. Required: 1. Compute the difference in cost per unit between making and buying the remotes if none of the fixed costs can be avoided. What is the change in net income, if Frannie Fans buys the remotes? 2. Compute the difference in cost per unit between making and buying the remotes if $20,640 of the fixed costs can be avoided. What is the change in net income, if Frannie Fans buys the remotes? 3. What is the change in net income if fixed cost of $20,640 can be avoided and Frannie could rent out the factory space no longer in use for $20,640?

Muspest Supplies is currently evaluating the cost of manufacturing some of the components utilised in their products. Currently the company expects to need 6 000 parts each month. A supplier of the part has been identified and the total cost of purchasing the parts on a monthly basis would be $97 000. In analysing the part costs, the direct labour and materials cost would be $64 000 and the variable overheads would be $22 000.Based only on the relevant cost per unit, which would be the preferred option of Muspest Supplies?HD EDUCATIONA. Unit costs to produce the part would be $14.33 with the unit cost to purchase of $ 16.17. In this case, the best option would be to commence purchasing the part.B. Unit costs to produce the part would be $10.67 with the unit cost to purchase of $ 16.17. In this case, the best option would be to continue to make the part.C. None of the other answers D. Unit costs to produce the part would be $14.33 with the unit cost to purchase of $ 16.17. In this case,…

A VACUUM MANAUFACTUER HAS PREPARED THE FOLLOWING HAS THE FOLLOWING COST DATA FOR MANUFACTURING ONE OF ITS ENGINE COMPONENTS BASED ON THE ANNUAL PRODUCTION OF 50,000 UNITS DIRECT MATERIALS     $75,000 DIRECT LABOR             $100,000 TOTAL                            $175,000 IN ADDITION, VARIABLE FACTORY OVERHEAD IS APPLIED AT $7.50 PER UNIT. FIXED FACTORY OVERHEAD IS APPLIED AT 150% OF DIRECT LABOUR COST PER UNIT.  THE VACUUM SELLS FOR $150 EACH.  A THIRD PARTY HAS OFFERED TO MAKE THE ENGINES FOR $60 PER UNIT. 75% OF THE FIXED FACTORY OVERHEAD, WHICH REPRESENTS EXECUTIVE SALARIES, RENT, DEPRECIATION, AND TAXES, CONTINUES REGARDLESS OF DECISION.  sHOULD THE COMPANY MAKE OR BUY THE ENGINES?