Question 6 Genent\'s Engine Company manufactures part TE456 used in several of i

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Question 6 Genent's Engine Company manufactures part TE456 used in several of its engine models Monthly production costs for 1,000 units are as follows Direct materials Direct labor Variable overhead costs 34,500 Fixed overhead costs 23,000 Total costs It is estmiated that S% of the fixed overhead costs assigned to TE456 will no longer be incurred if the company outside supplier Genent's $46,000 11,500 $115,00 es TE456 from the Engine Company accepts the offer from the part from an outside supplier at $97.75 per unit ·longer be lf Genent's Engine Comp any outside suppler, the athly a oudable costs (costs ha curred) total Selected Answer. A $93,840 B $92,000 c $115,000 D. S116,840 Answers

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Question 9

Question 6 Monthly Aviodable costs Direct material 46,000 Direct Labor 11,500 Variable overhead cost 34,500 Fixed cost - 8 % * $ 23,0000 1840 Total avoidable cost 93,840 The answer to the above question is A 93,840

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