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Excercise 6-32 - 330,000.00 – 300,000.00 = 30,000.00...

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Per Unit Total Make Buy Make Buy Purchase Price 3.30 330,000.00 Direct Materials 3.00 300,000.00 Total Relevant Cost 3.00 3.30 300,000.00 330,000.00
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Exercise 6-32, pp 276-7 of Introduction to Management Accounting. 300,000.00/100,000.00 = 3.00 3.30 * 100,000.00 = 330,000.00
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Unformatted text preview: 330,000.00 – 300,000.00 = 30,000.00 100,000.00/30,000.00=.30 Factory overhead costs are fixed and are not relevant in making the decision. Making the component is less costly by $.30 per unit or $30,000.00 in total....
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Excercise 6-32 - 330,000.00 – 300,000.00 = 30,000.00...

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