Zouar on.com/lowlconnect.heR-trereturnUi-hps3ASOPFconnect.mheducation.comse fest

Question

Zouar on.com/lowlconnect.heR-trereturnUi-hps3ASOPFconnect.mheducation.comse fest Chapter t and 12 Help Save&ExiSubm; Zouar Computer Corporation currently manufactures the diesk drives that a uses in its computers The costs to produce 5,000 of these disk drives last year were as follow Direct materials Direct labor Variable sanufacturing overhead Fixed manufacturing overhead Total $12 $26 Kidal Electronics has offered to provide Zouar with all of es disk drive needs for $27 per drive If Zouar accepts this offer, Zouar wil be able touse the freed up space to generate an addional S40000ncome each year to produce more of its conaer keyboards sa per drive of the fxed manufacturing overhead cost above could be avoided Direct labor is an avoidable cost in this decision Based on ths information, would Zouar be fnancially better off making the drives or buying the drives and by how much oe

Explanation / Answer

Differential analysis :

so answer is c) $15000 better to buy

Make Buy Direct material 60000 Direct labour 10000 Variable overhead 25000 Fixed overhead 15000 Purchase cost 135000 Opportunity cost 40000 Total cost 150000 135000

Related Questions

Navigate

• Browse (All)
• Browse Z
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.