Company is considering buying a part next year that they currently produce. A company has offered to supply this part for $17.13 per unit. This year\u2019s production costs for 84,000 units of this part were: Cost Item Total Per-Unit Materials $487,200 $5.80 Direct labor 504,000 6.00 Total overhead 495,600 5.90 Of the total overhead costs, $168,000 were fixed,<\/p>\n
and of the total fixed overhead costs, $62,160 were directly related to the part and could be avoided if the part was bought instead of made. Production next year is expected to increase to 87,900 units. If X Company buys the part, it use its idle resources to save $7,000 per year. 3. If X Company continues to make the part instead of buying it, it will save<\/p>\n","protected":false},"excerpt":{"rendered":"
Company is considering buying a part next year that they currently produce. A company has offered to supply this part for $17.13 per unit. This year\u2019s production costs for 84,000 units of this part were: Cost Item Total Per-Unit Materials Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-147791","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/147791","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=147791"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/147791\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=147791"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=147791"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=147791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}