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================================================== ACCT 505 Final Exam Guide ( New ) Set 2
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Total costs $ 119,000 An outside supplier has offered to provide Part Y at a price of $ 12 per unit . If Lindon stops producing the part internally , one third of the fixed manufacturing overhead would be eliminated . Required : Prepare a make-orbuy analysis showing the annual advantage or disadvantage of accepting the outside supplier ' s offer . Please state cle arly whether the part should be made or bought and share your work . 7 . Question : ( TCO B ) Sandler Corporation bases its predetermined o verhead rate on the estimated machine hours for the upcoming year . Data for the upcomin g year appear below . Estimated machine hours 75,000 Estimated variable manufacturing overhead $ 4.50 per machine hour Estimated total fixed manufacturing overhead $ 825,000 The actual machine hours for the year turned out to be 77,000 . Required : Compute the company ' s predetermined overhead rate .

================================================== ACCT 505 Final Exam Guide ( New ) Set 2

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Set 2 1 . ( TCO C ) Madlem , Inc ., produces and sells a single product whose selling price is $ 120.00 per unit and whose variable expense is $ 46.20 per unit . The company ' s fixed expense is $ 405,900 per month .