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Author Question: McMurphy Corporation produces a part that is used in the manufacture of one of its products. The ... (Read 122 times)

Pea0909berry

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on: Mar 6, 2021
McMurphy Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 12,000 units of this part are as follows:

Direct materials$86,000
Direct labor126,000
Variable factory overhead58,000
Fixed factory overhead138,000
Total costs$408,000

Of the fixed factory overhead costs, $55,000 is avoidable.  Conners Company has offered to sell 12,000 units of the same part to McMurphy Corporation for $41 per unit.

 Assuming there is no other use for the facilities, Schmidt should ________.
◦ make the part, as this would save $16 per unit
◦ buy the part, as this would save $16 per unit
◦ buy the part, as this would save the company $192,000
◦ make the part, as this would save $14 per unit
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by Pea0909berry on Mar 6, 2021

mjenn52

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Pea0909berry

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Reply 2 on: Mar 6, 2021
Wow, this really help

carlsona147

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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