It would be very much appreciated if all three were solved, very much. Thank you

Question

It would be very much appreciated if all three were solved, very much. Thank you. (please give steps if possible).

Bramble's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $121000 24000 53000 30000 If Bramble's Manufacturing Company purchases the component externally, $20000 of the fixed costs can be avoided. What is the maximum amount Bramble is willing to pay to purchase the 100 units? $218000 $198000 $228000 $208000

Explanation / Answer

1 Direct materials 121000 Direct labor 24000 Variable overhead 53000 Fixed overhead 20000 Maximum amount 218000 2 Direct materials 35000 Direct labor 16000 Variable overhead 9000 Fixed overhead 6000 Maximum amount 66000 3 Cost to make: Direct materials 8904 Direct labor 11978 Variable overhead 13356 Total Cost to make 34238 Cost to buy 30210 Change in income 4028

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