Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 29 Jul 2017 My Price 9.00

Henderson Manufacturing Inc.

Henderson Manufacturing Inc. manufactures electric scooters. The company currently makes all of the electronic components for the scooter itself. When 6,000 motors are manufactured each year, the motor costs per unit are as follows:

Direct materials
$3
Direct labor
4
Variable overhead
5
Fixed overhead
8
Plymouth Inc. has offered to sell Henderson 6,000 motors for $15 per unit. If Henderson accepts the offer, 60% of the fixed overhead currently allocated to the motors could be avoided.
What are the relevant costs per unit of Henderson manufacturing the motors themselves?
Answer
a. $16.80
b. $15.20
c. $20.00
d. $12.00
2 points
Question 58

Refer to the Henderson Manufacturing Inc. information above. If Henderson accepts the offer to purchase 6,000 motors from Plymouth, net income will:
a. decrease by $1,200.
b. increase by $30,000.
c. decrease by $18,000.
d. increase by $10,800.
Answer
a. decrease by $1,200
b. increase by $30,000
c. decrease by $18,000
d. increase by $10,800

Answers

Maurice Tutor
(5)
Status NEW Posted 29 Jul 2017 03:07 PM My Price 9.00

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