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4) Pottery Sandhill Inc. has been manufactoring its own finials for its curtain rods... ...

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Accounting

4) Pottery Sandhill Inc. has been manufactoring its own finials for its curtain rods...
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Pottery Sandhill Inc has been manufacturing its own finials for its curtain rods. The company is currently operating at 100%6 of capacity, and variable manufacturing overhead is charged to production at the rate of 57% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $4 and $5, respectively. Normal production is 25,500 curtain rods per year A supplier offers to make a pair of finials at a price of $13.25 per unit. If Pottery Sandhill accepts the supplier's offer; all variable manufacturing costs will be eliminated, but the $46,400 of foed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. (a) Prepare the incremental analysis for the decision to make or buy the finials. (Enter negative amounts using either a negative sizn precedir the number eg -45 or porentheses es. (45)) (b) Should Pottery Sandhill buy the finlals? Pottery Sandhill should the finlals. (c) Would your answer be different in (b) if the productive copacity released by not making the finials could be used to produce income of $41,700

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