Maurice Tutor

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About Maurice Tutor

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Expertise:
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Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 401 Weeks Ago, 1 Day Ago
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Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 05 Aug 2017 My Price 7.00

Yoklic Corporation

Make or buy Yoklic Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows:
Q4, Q6
Direct materials
$ 4.00
Direct labor
30.00
Variable overhead
15.00
Fixed overhead
25.00
Total
$74.00
Regina Corp has contacted Yoklic with an offer to sell it 5,000 subassemblies for $55.00 each.
REQUIRED:
A. Should Yoklic make or buy the subassemblies? Create a schedule that shows the total quantitative differences between the two alternatives.B. The accountant decided to investigate the fixed costs to determine whether any incremental changes would occur if the subassembly were no longer manufactured. The accountant believes that Yoklic will eliminate $50,000 of fixed overhead if it accepts the proposal. Does this new information change the decision? Show your calculations.C. Ignore the information in part (B). Now suppose Yoklic could use the capacity released under the buy alternative to make a different subassembly that it currently purchases from a vendor for $20. The manufacturing engineer believes that the company can use the existing equipment to manufacture the subassembly for $13 each (direct materials, direct labor, and variable overhead). The firm uses about 5,000 of these subassemblies. Create a schedule that shows the difference between the two alternatives.

Answers

Maurice Tutor
(5)
Status NEW Posted 05 Aug 2017 04:08 PM My Price 7.00

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