Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. han products manufactures 37,500 units of part s6

Han Products manufactures 37,500 units of part S6 each year for use on its production...

50.1K

Verified Solution

Question

Accounting

image
Han Products manufactures 37,500 units of part S6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is as follows: Direct materials Direct labour Variable overhead Fixed overhead Total cost per part $ 4.25 10.25 3.25 $27.20 An outside supplier has offered to sell 33,000 units of part 6 each year to Han Products for $24.25 per part. If Han Products accepts this offer the facilities now being used to manufacture part S6 could be tented to another company at an annual rental of $90,000 However. Han Products has determined that 30% of the fixed overhead being applied to part 5-6 will be avoided if parts 6 is purchased from the outside supplier. Required: 1. What is the net dollar advantage or disadvantage of accepting the outside supplier's offer? (Round "Total costs" and final answer to the nearest whole dollar amount.)

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

Q

Write the equation of the conic section shown below.

Calculus
Q

Reflect on a time when you first joined a group (sports, activities, work-related, class-related project) and...

Psychology
Q

based on what assessments do TVET staff be evaluated \" example of a case study\"

Operations Management
Q

List and briefly describe five strategies to manage outstanding accounts and debt collection.

Finance
Q

Lactic acid fermentation takes place after glycolysis in the absence of A B C D...

Biology
Q

The sodium ion concentration is higher inside the cell than outside and the potassium ion...

Biology
Q

10 A converging lens of glass has its optica power P in the air If...

Physics
Q

A tower that is 100 feet tall casts a shadow 154 feet long. Find the...

Basic Math
Q

Shareholder D transfer a building to K Corporation that has a basis of $50,000 and...

Accounting
Q

4. (12 points) Record the following transactions in the financial statements effects template below 1....

Accounting
Q

Babcock Company purchased a piece of machinery for $30.000 on January 1, 2019, and has...

Accounting
Q

From the SEC website or other sources, locate Daily Journals 2013 Form 10-K and review...

Accounting