WQ 9.xlsx - Expected costs in 2018 Variable manufacturing costs Direct material cost per CMCB Variable manufacturing cost per batch for setups Direct

WQ 9.xlsx - Expected costs in 2018 Variable manufacturing...

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Variable manufacturing costs Direct material cost per CMCB $ 170 Direct manufacturing labour cost per CMCB 45 1,500 Fixed manufacturing costs 320,000 800,000 Additional Information Given Total Units required in 2018 10,000 Batches required 80 Expected costs in 2018 materials handling, and quality control Fixed manufacturing costs that can be avoided if CMCBs are not made Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBs are not made
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(B) Make or Buy Make Cost of Purchase 300 (C) Should Svenson make or buy CMCBs? Explain, if current capacity is used to manufact Incremental revenues 2,000,000 incremental costs 2,150,000 Profit/Loss of making CB3s Make CMCBs Buy CMCBs Costs of Making/Buying Addition profit/costs of CB3s Total Relevant Costs (A) Calculate total expected manufacutring cost per unit of making CMCBs in 2018
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Buy ture CB3s Make CMCS & CB3s
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  • Fall '19
  • total variable costs, Variable Costs Manufacturing

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