Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. x company currently buys a part from a supplier fo

X Company currently buys a part from a supplier for $13.86 per unit but is...

50.1K

Verified Solution

Question

Accounting

X Company currently buys a part from a supplier for $13.86 per unit but is considering making the part itself next year. This year, they purchased 3,400 units of this part; next year, they think they will need 3,800 units. Estimated costs to make the part are:

Per-Unit Total
Direct materials $3.37 $11,458
Direct labor 4.58 15,572
Variable overhead 3.60 12,240
Fixed overhead 3.70 12,580
Total $15.25 $51,850

Of the estimated fixed overhead, $6,038 are common costs that would be allocated to the part; the rest would be additional fixed overhead costs. X Company currently rents unused factory space for $2,100; it will have to use this space to make the part. If X Company makes the part instead of buying it, it will save?

(The answer is not 6672)

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

Biology
1.2K views

Of the following four 15-bp double-stranded DNA sequences, which will have a higher melting temperature? (Note: only...

Biology
1.2K views

9)List three modern challenges in public health microbiology and potential ways to mitigate them.

Chemistry
1.2K views

Name and describe at least two instruments that can detect trace amounts of metal elements in...

Mechanical Engineering
1.2K views

Air flows through a constant area duct. The pressure and temperature of the air at the...

Biology
1.2K views

True or False For each statement write T for True if the statement is true...

Basic Math
1.2K views

Read the list of verbs foretold overtook will inflict will petition A writer would most...

Basic Math
1.2K views

n 1 of 13 Macmillan Learning Solve the triangle which is a case of ASA...

Algebra
1.2K views

Your credit card has a balance of 4900 and an annual interest rate of 12...

Accounting
1.2K views

The charter of a corporation provides for the issuance of 94,448 shares of common stock....

Accounting
1.2K views

choose? A first step in addressing ethical dilemmas is to identify the...

Accounting
1.2K views

What is the best type of audit procedure? A. Interviews B. Observation C. Confirmation D....

Accounting
1.2K views

Case Study: Risk Management in Accounting in Unstable Political Nations Introduction: XYZ Accounting Firm,...