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# e6-3 - Name Instructor Managerial Accounting 3rd Edition by...

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FileName: 635e251ce26a8f74f6dd8d4d32d34991703077ff.xls, Tab: Exercise E6-3, Page 1 of 2, 12/28/2011, 19:01:29 Name: Date: Instructor: Course: 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 70% of direct labor cost. The direct material cost is \$5.00 and direct labor cost is \$6.00 per lamp shade. Normal production is 30,000 table lamps per year. A supplier offers to make the lamp shades at a price of \$15.50 per unit. If Stahl Inc. accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the \$45,000 of fixed manufacturing overhead currently being charged to the lamp shades will have to be absorbed by other products. Instructions: Make Buy Title Amount Amount Amount Title Amount Amount Amount Title Amount Amount Amount Title Amount Amount Amount Title Amount Amount Amount Total annual cost Formula Formula Formula \$35,000 Make Buy Title Amount Amount Amount Title Amount Amount Amount Total cost Formula Formula Formula Managerial Accounting, 3 rd Edition, by Weygandt, Kieso, and Kimmel

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e6-3 - Name Instructor Managerial Accounting 3rd Edition by...

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