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Author Question: Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit ... (Read 193 times)

oliviahorn72

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on: Mar 6, 2021
Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows:

Direct materials$54.00
Direct labor35.00
Variable overhead40.00
Fixed overhead34.00
Total$163.00

Crayola Technologies Inc. has contacted Rubium with an offer to sell 6,000 of the subassemblies for $144.00 each. Rubium will eliminate $89,000 of fixed overhead if it accepts the proposal.  Should Rubium make or buy the subassemblies? What is the difference between the two alternatives?
◦ Buy; savings = $89,000
◦ Buy; savings = $7,000
◦ Make; savings = $1,000
◦ Make; savings = $203,000
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by oliviahorn72 on Mar 6, 2021

katieost

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Reply #1 on: Mar 6, 2021
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連志鋒

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Reply #2 on: Jun 11, 2021
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