wisco of P6-2A

wisco of P6-2A - P6-2A The management of Borealis...

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1. 7,000 units of WISCO were produced in the Machining Department. 3. Fixed manufacturing costs applicable to the production of WISCO were: Cost Item Direct Allocated Depreciation $2,100 $900 Property taxes 500 200 Insurance 900 600 $3,500 $1,700 4. The lowest quotation for 7,000 WISCO units from a supplier is $70,000 Instructions (b) Based on your analysis, what decision should management make? (d) What nonfinancial factors should management consider in making its dec (a) Make WISCO Buy WISCO Net Income Increase/Decrease Direct material 33,600 33,600 Direct labor 30,100 30,100 Indirect labor 3,010 3,010 Utilities 2,800 2,800 Depreciation 3,000 900 2,100 Property taxes 700 200 500 Insurance 1,500 600 900 P6-2A The management of Borealis Manufacturing Company is trying to dec manufacturing a part or to buy it from an outside supplier. The part called, WIS company's finished product. The following information was collected from the accounting records and year ending December 31, 2005 2. Variable manufacturing costs applicable to the production of each WISCO
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wisco of P6-2A - P6-2A The management of Borealis...

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