Chapter 12 Full Student Version [Read-Only]

Should we accept the suppliers offer 12 20 the make

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Unformatted text preview: f $25 per part. Should we accept the supplier’s offer? 12-20 The Make or Buy Decision Cost Per Unit Outside purchase price $ 25 Direct materials Direct Direct labour Variable overhead Depreciation of equip. Supervisor's salary General factory overhead Total cost $ 9 5 1 - 2 $ 17 Cost of 20,000 Units Buy Make $ 500,000 180,000 100,000 20,000 40,000 $ 340,000 Should Should we make or buy part 4A? $ 500,000 12-21 The Make or Buy Decision 12-22 The Make or Buy Decision Cost Per Unit Outside purchase price $ 25 Direct materials Direct Direct labour Variable overhead Depreciation of equip. Supervisor's salary General factory overhead Total cost $ 9 5 1 2 $ 17 Cost Per Unit Cost of 20,000 Units Buy Make $ 500,000 180,000 100,000 20,000 40,000 $ 340,000 Outside purchase price Direct materials Direct Direct labour Variable overhead Depreciation of equip. Supervisor's salary General factory overhead Total cost $ 500,000 $ 25 $ 9 5 1 - 2 $ 17 Cost of 20,000 Units Buy Make $ 500,000 180,000 100,000 20,000 40,000 $ 340,000 $ 500,000 Not avoidable; irrelevant. If the product...
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This note was uploaded on 04/01/2014 for the course RSM 222 taught by Professor D.cianflone during the Winter '10 term at University of Toronto- Toronto.

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