Rand Corporation produced 1,000 units of a special component part with the following costs: Direct...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Rand Corporation produced 1,000 units of a special component part with the following costs: Direct Materials $14.00 Please Explain this - Does Direct Labor 26.00 each unit cost $6,500 ?? or this is the cost for over- Variable Overhead 12.00 all??? Fixed Overhead 18.00 An international supplier offer to sell the 1,000 units for $6,500. If Rand Corporation purchases the component from the supplier, one-third of the fixed costs will be eliminated. Should Rand make or buy the components? a. Buy; savings = $500. b. Make; savings = $700. C. Make; savings = $6,430. d. none of the above
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!
