Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 2. make or buy decision part 9a is used in one of

2. Make or Buy Decision Part 9A is used in one of Dell's products. The...

50.1K

Verified Solution

Question

Accounting

image
2. Make or Buy Decision Part 9A is used in one of Dell's products. The company makes 6,000 units of this part each year. The company's Accounting Department reports the following costs of producing the 9 part at this level of activity: Per Unit 1.40 $2.40 $7.20 3.60 S8.90 Variable manufacturing overhead. Supervisor's salary.. Depreciation of special equipment Allocated general overhead. An outside supplier has offered to produce this part and sell it to the company for $16.10 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $6,000 of these allocated general overhead costs would be avoided. Should outsi de supplier's offer be accepted? Please show all the computations. (14 points)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students