3.1.1 apr%2027%20precision%20electronics%20soln.ppt

3.1.1 apr%2027%20precision%20electronics%20soln.ppt -...

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ACIS 222 Solutions to Relevant Costs for Decision Making Precision Electronics (Lecture slides 34-41)
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Ch8- Ch8- 2 Decision 1: Solution $000s $000s Cost of purchasing (500 000 components @ $5) 2 500 Cost avoided by purchasing: Direct materials (@ $1) 500 Direct labour (@ $3.55) 1 775 Variable overhead (@ 35c) 175 Supervisory salaries 45 18 2 513 Advantage of purchasing parts $ 13
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Ch8- Ch8- 3 Decision 2: Solution Advantage of purchasing part $13 000 plus
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Unformatted text preview: Revenues from Beverage 25 000 38 000 less Heating & lighting 18 000 Advantage of purchasing the $ 20 000 part and letting Beverage use the space Ch8-Ch8-4 Decision 3: Solution Revenues (20 000 @ $14) 280 000 Manufacturing Costs: Direct materials $ 4 Direct labour 8 Variable overhead 1 $ 13 x Units 20 000 $ 260 000 Packaging & shipping 5 000 265 000 Advantage of accepting special order $ 15 000...
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3.1.1 apr%2027%20precision%20electronics%20soln.ppt -...

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