Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. teich inc, is considering whether to continue to m

teich inc, is considering whether to continue to make a component or to buy it...

50.1K

Verified Solution

Question

Accounting

teich inc, is considering whether to continue to make a component or to buy it from an outside supplier
image
Teich Inc. is considering whether to continue to make a component or to buy it from an company uses 14,000 of the components each year. The unit product cost of the come company's absorption cost accounting system is given as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead T Unit product cost $9.80 6.80 2.60 4.60 $23.80 Assume that direct labor is a variable cost. Of the fixed manufacturing overhead, 35% is a component were bought from the outside supplier, the remainder is not avoidable. In a component uses 3 minutes on the machine that is the company's current constraint. If the bought, time would be freed up for use on another product that requires 6 minutes on th has a contribution margin of $6.20 per unit. When deciding whether to make or buy the component, what cost of making the compor compared to the price of buying the component? (Round your intermediate calculations a decimal places.) O $26.90 O $23.91 O $25.30 O $20 81 Type here to search

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

please explain the steps and the different parts of an ekg (like the line)

Medical Sciences
Q

A) At what angular frequency is the voltage amplitude across the resistor in anL-R-C series circuit at...

Physics
Q

Question 4 Convert 233 9 feet per minute into centimeters per second Round your answer...

Basic Math
Q

Use the given zero to find h x x 12x 28x Enter the remaining zeros

Calculus
Q

Determine lim csc x cot x 0 1 0 8 1

Calculus
Q

Two grams of musk oil are required for each bottle of Mink...

Accounting
Q

On January 1, Year 1, Young Company issued bonds with a...

Accounting
Q

Real accounts are carried forward always for next coming year operations and nominal accounts or...

Accounting
Q

How do capital expenditures differ from ordinary expenditures?

Accounting
Q

Maintaining adequate records is a principle of internal control. Maintaining...

Accounting
Q

Perfect Pet Collar Company makes custom leather pet collars. The company expects each collar to...

Accounting
Q

Select the option that correctly orders the accounts on a trial balance worksheet. 1. Assets...

Accounting