Maurice Tutor

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Teaching Since: May 2017
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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 02 Aug 2017 My Price 4.00

Hanson, Inc

Hanson, Inc makes 1,000 units per year of a part called a "prositron" for use in one of its products. Data concerning the unit production costs of the prositron follow: Direct materials $342 Direct labor 80 Varible manufacturing OH 48 Fixed manufacturing OH 520 Total $990 An outside supplier has offered to sell Hanson, Inc. all of the prositrons it requires. If Hanson, Inc. decided to discontinue making the prositrons, 10% of the above fixed manufacturing overhead costs could be avoided. required: Assume Hanson, Inc. has no alternative use for the facillities presently devoted to production of the prositrons. If the outside supplier offers to sell the prositrons for $850 each, should Hanson,Inc accept the offer? Fully support your answer with appropriate calculation.

Answers

(5)
Status NEW Posted 02 Aug 2017 10:08 AM My Price 4.00

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