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 $13.18 per unit but is...

70.2K

Verified Solution

Question

Accounting

X Company currently buys a part from a supplier for $13.18 per unit but is considering making the part itself next year. This year, they purchased 3,200 units of this part; next year, they think they will need 3,600 units. Estimated costs to make the part are:

Per-Unit Total
Direct materials $2.71 $8,672
Direct labor 4.17 13,344
Variable overhead 4.00 12,800
Fixed overhead 4.60 14,720
Total $15.48 $49,536

Of the estimated fixed overhead, $6,771 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 $2,900; it will have to use this space to make the part. If X Company continues to buy the part instead of making it, it will save ___________

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

Physics
1.2K views

The amount of liquid flowing per second in the tubes 1 2 and 3 are...

Statistics
1.2K views

Consider the discrete probability distribution given when answering the following question Find the probability that...

Algebra
1.2K views

Identify the transformations of the graph of f x that produce the graph of the...

Accounting
1.2K views

All That Blooms provides environmentally friendly lawn services for homeowners. Its operating costs are as...

Accounting
1.2K views

The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below:...

Accounting
1.2K views

The Retained Earnings amount needed for the Balance Sheet can be calculated as follows: Retained...

Accounting
1.2K views

Exercise 20-17 (Algo) Preparation of cash budgets (for three periods) LO P2 Kayak Company budgeted...

Finance
1.2K views

7. Using the 1980 cso Mortality Table, calculate the following net single premiums (NSPs). Assume...

Accounting
1.2K views

At a sales volume of 38,500 units, Choice Corporation's sales commissions (a cost that is...

Accounting
1.2K views

Prepare Ivanhoe's cash flows from operating activites

Accounting
1.2K views

Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for...

Finance
1.2K views

1. A 4-year annuity of $200 monthly payments begins 10 years from now. The required...