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BUS 5110: Managerial Accounting-Written Assignment Unit 4Case StudyDifferential Analysis of a Vacuum ManufacturingWritten Assignment Unit 4Managerial AccountingBUS 5110University of the PeopleDr. Zelealem Tadesse24thFeb 2020
BUS 5110: Managerial Accounting-Written Assignment Unit 4Written AssignmentSubmit a paper which is 2-3 pages in length (no more than 3-pages), exclusive of thereference page. Paper should be double spaced in Times New Roman (or its equivalent) fontwhich is no greater than 12 points in size. The paper should cite at least two sources in APAformat.One source can be your textbook.Please describe the circumstances of the following case study and recommend a course ofaction. Explain your approach to the problem, perform relevant calculations and analysis, andformulate a recommendation. Ensure your work and recommendation are thoroughlysupported.Case Study:A vacuum manufacturer has prepared the following cost data for manufacturing one of itsengine components based on the annual production of 50,000 units.DescriptionCost perMonthDirect Materials$75,000Direct Labor$100,000Total$175,000In addition, variable factory overhead is applied at $7.50 per unit. Fixed factory overhead isapplied at 150% of direct labor cost per unit. The vacuums sell for $150 each. A third partyhas offered to make the engines for $60 per unit. 75% of fixed factory overhead, which
BUS 5110: Managerial Accounting-Written Assignment Unit 4represents executive salaries, rent, depreciation, and taxes, continue regardless of thedecision. Should the company make or buy the engines?

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Cost Accounting, Managerial Accounting Written Assignment Unit

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