Variable costs: Indirect materials $ 4,182 $ 4,148 Electricity $ 2,536 $ 2,414
Fixed costs: Administration $ 6,540 $ 6,500 Rent $ 6,310 $ 6,400 Required: Construct a flexible budget performance report that would be useful in assessing how well costs were controlled in this department.( Points: 25)
Question 6.6.( TCO H) McMullen Co. uses 10,000 units of Part X each year as a component in the assembly of one of its products. The company is presently producing Part X internally at a total cost of $ 125,000 as follows. Direct materials $ 40,000 Direct labor 30,000 Variable manufacturing overhead 25,000 Fixed manufacturing overhead 30,000 Total costs $ 125,000 An outside supplier has offered to provide Part X at a price of $ 10 per unit. If McMullen stops producing the part internally, one third of the fixed manufacturing overhead would be eliminated. Required: Prepare a make-or-buy analysis showing the annual advantage or disadvantage of accepting the outside supplier ' s offer. Please state clearly whether the part should be made or bought and share your work.( Points: 30) Question 7.7.( TCO B) Buckhorn Corporation bases its predetermined overhead rate on the estimated machine hours for the upcoming year. Data for the upcoming year appear below. Estimated machine hours 37,000 Estimated variable manufacturing overhead $ 7.77 per machine hour Estimated total fixed manufacturing overhead $ 888,000
The actual machine hours for the year turned out to be 35,000.
Required: Compute the company ' s predetermined overhead rate.( Points: 25)