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Survey of Accounting (Available Titles Cengagenow)

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Exercise 12-6 Name: Section: Score: 0% Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. A red asterisk (*) will appear in the row immediately to the right of an incorrect answer. a. Proposal to Manufacture Carrying Case October 11, 2010 Purchase price of carrying case Differential cost to manufacture carrying case: Direct materials Direct labor Variable factory overhead Cost savings (loss) from manufacturing carrying case b. Is it advisable to make or buy the manufacturing case? Explain (select your answer from the drop-down list): Instructions
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Exercise 12-6 Name: SOLUTION Section: Score: See student sheet for student's score Scoring: ON Answers are entered in the cells with gray backgrounds.
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Unformatted text preview: Cells with non-gray backgrounds are protected and cannot be edited. A red asterisk (*) wil appear in the row immediately to the right of an incorrect answer. a. Proposal to Manufacture Carrying Case October 11, 2010 Purchase price of carrying case $68.00 Differential cost to manufacture carrying case: Direct materials $25.00 Direct labor 32.00 Variable factory overhead 4.80 61.80 Cost savings (loss) from manufacturing carrying case $6.20 b. Is it advisable to make or buy the manufacturing case? Make Explain (select your answer from the drop-down list): Instructions It is less costly to make the cases. Fixed factory overhead is irrelevant, because it wil be stil be incurred....
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