make outsource cakes Variable costs Direct materials Data Table Direct labor

Make outsource cakes variable costs direct materials

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(make-outsource) cakes Variable costs: Direct materials Data Table Direct labor Variable manufacturing overhead Purchase cost Direct materials 500 Total differential cost of cakes Direct labor 1,000 continue to make the cakes. Outsourcing will Variable manufacturing overhead 200 Grimm 1,200 Fixed manufacturing overhead 12. If GI the cakes, what are some qualitative factors that Grimm should also consider? should Total manufacturing cost 2$ 2,900 OA. iclude contribution margins of the various products produced. 100
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should not Number of cakes O B. ..iclude quality and on-time delivery. 29 Cost per cake Oc. Qualitative factors include separating fixed and variable costs. O D. Qualitative factors include considering sunk costs and manager's opinions. Print Done Enter any number in the adit fields and then continue to the next question. Grimm Company makes decorative wedding cakes. The company is considering buying the cakes rather than baking them, which will allow it to concentrate on decorating. The company averages 100 wedding cakes per year and incurs the following costs from baking wedding cakes: E (Click the icon to view the Dosts.) Fixed costs are primarily the depreciation on kitchen equipment such as ovens and mixers. Grimm expects to retain the equipment. Grimm can buy the cakes for $25. Should Grimm make the cakes or buy them? Why? 11. If
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  • Spring '16

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