ACCT 505 help A Guide to career/uophelp.com ACCT 505 help A Guide to career/uophelp.com | Página 19

45,000
Total costs $119,000
An outside supplier has offered to provide Part Y at a price of $12 per un
it. 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 clearl
y
whether the part should be made or bought and share your work.
7. Question : (TCO B) Sandler Corporation bases its predetermined over
head 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.
-----------------------------------------------------------------------------
ACCT 505 Final Exam Guide (New) Set 2
For more course tutorials visit
www.uophelp.com