$ 26,000 Direct labor 28,000 Variable manufacturing overhead 20,000 Fixed manufacturing overhead 45,000 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-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.
7. Question:( TCO B) Sandler 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 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. Set 2