Ask Question
3 September, 01:25

Bell's Shop can make 1000 units of a necessary component with the following costs: Direct Materials $24000 Direct Labor 6000 Variable Overhead 3000 Fixed Overhead? The company can purchase the 1000 units externally for $39000. The unavoidable fixed costs are $2000 if the units are purchased externally. An analysis shows that at this external price, the company is indifferent between making or buying the part. What are the fixed overhead costs of making the component?

+3
Answers (1)
  1. 3 September, 01:34
    0
    8,000 = fixed overhead

    Explanation:

    Giving the following information:

    Bell's Shop can make 1000 units of a necessary component with the following costs:

    Direct Materials $24000

    Direct Labor 6000

    Variable Overhead 3000

    Fixed Overhead?

    The company can purchase the 1000 units externally for $39000. The unavoidable fixed costs are $2000 if the units are purchased externally.

    Buy = 41,000/1,000 = $41

    Total Unitary cost = 24,000 + 6,000 + 3,000 + fixed overhead

    41,000 = 33,000 + fixed overhead

    8,000 = fixed overhead
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Bell's Shop can make 1000 units of a necessary component with the following costs: Direct Materials $24000 Direct Labor 6000 Variable ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers