Direct materials – $4
Variable direct manufacturing labor – 38
Variable manufacturing overhead -16
Fixed manufacturing overhead allocated -19
Total manufacturing cost per unit – $77
The Pane Company has offered to sell 10,000 units of Part No. 498 to Springfield for $ 73 per unit. Springfield will make the decision to buy the part from Pane if there is an overall savings of at least $ 50,000 for Springfield. If Springfield accepts Pane's offer, $ 6 per unit of the fixed overhead allocated would be eliminated. Furthermore, Springfield has determined that the released facilities could be used to save relevant costs in the manufacture of Part No. 575.
2. The Springfield Company manufactures Part No. 498 for use in its production line. The manufacturing cost per unit for 10,000 units of Part No. 498 is as follows: For Springfield to achieve an overall savings of $ 50,000, the number of relevant costs that would have to be saved by using the released facilities in the manufacture of Part No. 575 would be which of the following: (a) $40,000, (b) $ 140,000, (c) $70,000 or (d) $ 130,000? Show your calculations. What other factors might Springfield consider before outsourcing to Pane? Get Accounting homework help today
Our customer is the center of what we do and thus we offer 100% original essays..
By ordering our essays, you are guaranteed the best quality through our qualified experts.All your information and everything that you do on our website is kept completely confidential.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
The paper ordered is very original. Orders are checked by the most advanced anti-plagiarism software in the industry which ensures that the the essay written is 100% original. In that regard,we have a zero tolerance policy for plagiarism.Read more
Our Company thrives on excellence and thus we help ensure the Customer’s total satisfaction with the completed Order.To do so, we provide a Free Revision policy as a courtesy service. To receive free revision the Company requires that the Customer provides the request within Fifteen (15) days from the first completion date and within a period of thirty (30) days for dissertations and research papers.Read more
The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.Read more
By placing an order with us, you agree to the service we provide. We will endeavor to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.Read more