In a make-or-buy decision, what do relevant costs include? Avoidiable fixed cost

Question

In a make-or-buy decision, what do relevant costs include? Avoidiable fixed costs Fixed selling and administrative expences Unavioidable fixed costs. Data concerning the direct labor costs for March of Bolet Corporation appear below Standard wage rate standard hours Actual wage rate Actual hours Actual output $10 30 31 S10 10 12 390 3600 per DLH DLHsperur per DLH DLMs The journal entry to record the incurrence of direct labor cods in March would include the Mowing for Work in Process: A. Octfi of $125,139 B. Debit of $II4.A

Explanation / Answer

3 ) Avoidable fixed cost.

4)

4) Planned budget (1540 + 497*112) = 57204

    Flexible budget (1540 +497*107) = 54719

   Activity Variance                                  2485F

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