Maurice Tutor

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About Maurice Tutor

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Teaching Since: May 2017
Last Sign in: 402 Weeks Ago, 5 Days Ago
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 24 Jul 2017 My Price 13.00

cost Premier Company

Make-or-buy and opportunity cost Premier Company manufactures gear model G37, which is used in several of its farm-equipment products. Annual production volume of G
Direct materials costs………… $55
Direct labor costs……………… 30
Variable overhead costs……….. 25
Fixed overhead costs………….. 15
Total costs…………………... $125
Alternatively, Premier can purchase gear model G37 from an outside supplier for $120 per unit. If G37 is outsourced, Premier can use the facility where G37 is currently manufactured for production of another gear—model G49. This would save Premier $113,000 in facility rental and other costs presently incurred. 
Required
Should Premier make or buy G37? By how much will Premier be better off by choosing your decision rather than the alternative

 

Answers

Maurice Tutor
(5)
Status NEW Posted 24 Jul 2017 10:07 AM My Price 13.00

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