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Pottery Ranch Inc, has been manufacturing its own finials for its curtain rods. The company...

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Accounting

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Pottery Ranch Inc, has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 684 of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finis are $4 and 35, respectively. Normal production is 25,300 curtain rods per year. A supplier offers to make a pair of Anials at a price of $12.95 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $46,400 of fed manufacturing overhead currently being charged to the finals will have to be absorbed by other products (a) Prepare the incremental analysis for the decision to make or buy the finals. (Enter negative amounts using either a negative sin preceding the number ..-45 or parentheses (45).) Increase (Decrease) Direct materials Direct laber Variable overhead costs Foxed manufacturing costs Purchase price Total annual cost Should Pottery Ranch buy the finals? Pottery Ranch should the finals Would your answer be different in (b) of the productive capacity released by not making the finals could be used to produce income of $18.4157 6. Income would by

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