Sensor Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per​ unit: LOADING... ​(Click the icon to view the​ costs.)  Direct materials $7.00 Direct labor 2.00 Variable overhead 8.00 Fixed overhead 6.50____________________________ Manufacturing product cost $23.50__________________________ _________________________________                                                                           LOADING... ​(Click the icon to view additional​ information.) Another company has offered to sell Sensor Systems the switch for $19.00 per unit. If Sensor Systems buys the switch from the outside​ supplier, the idle manufacturing facilities cannot be used for any other​ purpose, yet none of the fixed costs are avoidable.    Prepare an outsourcing analysis to determine whether Sensor Systems should make or buy the switch. ​(For the Difference​ column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the switches​ in-house.)     Make Outsource Difference   optical switch optical switch (Make—Outsource) Variable costs:       Direct materials       Direct labor       Variable overhead       Purchase price from outsider       Total differential cost per unit       ​Decision: ▼   buy the optical switch make the optical switch

Upstate Mechanical, Inc., has been producing two bearings, components T79 and B81, for use in production. Data regarding these two components follow. Machine hours required per unit Standard cost per unit: Direct material Direct labor Manufacturing overhead Variable* Fixed Total T79 B81 2.5 3.0 $ 2.25 $ 3.75 4.00 4.50 2.00 2.25 3.75 4.50 $12.00 $15.00 *Variable manufacturing overhead is applied on the basis of direct-labor hours. *Fixed manufacturing overhead is applied on the basis of machine hours. Upstate Mechanical's annual requirement for these components is 8,000 units of T79 and 11,000 units of B81. Recently, management decided to devote additional machine time to other product lines, leaving only 41,000 machine hours per year for producing the bearings. An outside company has offered to sell Upstate Mechanical its annual supply of bearings at prices of $11.25 for T79 and $13.50 for B81. Management wants to schedule the otherwise idle 41,000 machine hours to produce bearings so…

Alibaba Manufacturing manufactures widgets for distribution. The standard costs for the manufacture of widgets follow:                                      Standard Costs                        Actual CostsDirect materials           3 lbs. per widget at              31,000 lbs. at $34                                         $35 per pound                     per poundDirect labor                     2.5 hours per widget            22,500 hours at                                         at $11 per hour                  $11.80 per hourFactory overhead       Variable cost, $24/widget      $241,500 variable cost                                    Fixed cost, $40/widget           $381,250 fixed cost Budgeted factory overhead was $640,000. Overhead applied is based on widgets produced. The company estimated that 10,000 widgets would be produced; however, only 9,600 were produced. InstructionsCalculate the following amounts.1. Rate at which total factory overhead is applied2. Materials price…

Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following cost data. Rounded Edge Squared Edge $ 44,800 Total $ 76,000 Direct materials Direct labor Overhead (using plantwide rate) Total product cost $ 31,200 12,200 36,600 Units produced Product cost per unit. 23,800 71,400 36,000 108,000 $ 80,000 10,000 $ 8 $ 140,000 14,000 $ 10 $ 220,000 Northwest's controller wants to apply activity-based costing to allocate the $108,000 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional information is collected. Activity Purchasing Budgeted Cost $ 5,400 Depreciation of machinery Setup 56,600 46,000 Activity Cost Driver Purchase orders Machine hours Setups Rounded Edge 109 orders 500 hours 40 setups Activity Usage Squared Edge 431 orders 1,500 hours 210 setups Total…