Xia Co. currently buys a component part for $10 per unit. Xia believes that making the part would require $7.20 per unit of direct materials and $1.05 per unit of direct labor. Xia allocates overhead using a predetermined overhead rate of 245% of direct labor cost. Xia estimates an incremental overhead rate of $0.75 per unit to make the part.
What are the relevant costs for Xia to make or buy the part? (Round your answers to 2 decimal places.) Should Xia make or buy the part?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Xia Co. currently buys a component part for $10 per unit. Xia believes that making the part would require $7.20 per unit of direct ...” 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
You Might be Interested in
The term referring to the rate of yearly interest for your credit card is commonly known as: A. Default Rate B. APR C. COD D. Grace period
Answers (1)
To motivate longtime employees who are at or past retirement age to stay with the company so the organization does not lose their expertise and deep relationships with customers, columbia office furniture structures its retirement savings plan to
Answers (1)
The current market price of a share of Disney stock is $60. If a call option on this stock has a strike price of $65, the call can be exercised profitably. is out of the money. is out of the money and can be exercised profitably.
Answers (1)
Foreign currencies that are deposited in banks outside the home country are known as A. Eurobond. B. Eurocurrencies. C. foreign bonds. D. Eurodollars.
Answers (1)
Select all that apply. When using shared work areas, show consideration by: notifying the proper person when supplies are needed leaving empty coffee cups on the desk returning equipment and tools to their proper place keeping shared work areas neat
Answers (1)
New Questions in Business
How does the government of a republic typically shape its economy? A. The government allows citizens to own private businesses. B. The government blocks the ownership of personal property. C. The government owns all homes and other forms of housing.
Answers (1)
For a business credit card, most companies that issue credit, including Visa and Mastercard, specifically state their liability policies: Only cover the first $50.
Answers (1)
In the resource-based view of the firm, examples of tangible resources include: Select one: a. outstanding customer service, innovativeness of products, and reputation b.
Answers (1)
Off-Line Co. has 9,000 units in beginning finished goods. The sales budget shows expected sales to be 36,000 units. If the production budget shows that 42,000 units are required for production, what was the desired ending finished goods?
Answers (1)
g resh bought 1,000 shares of Ibis Corporation stock for $5,600 on January 15, 2017. On December 31, 2019, she sold all 1,000 shares of her Ibis stock for $4,800.
Answers (1)