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Author Question: H.J. Manufacturing produces 10,000 units of a part that is used in their assembly process. The ... (Read 102 times)

s.tung

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on: Mar 6, 2021

Question 1

Variable cost per unit is the best product cost to use for one-time-only special order decisions.
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Question 2

H.J. Manufacturing produces 10,000 units of a part that is used in their assembly process. The production costs are as follows:

Direct materials$ 50,000
Direct manufacturing labor20,000
Variable support costs35,000
Fixed support costs25,000
Total costs$130,000

H.J. Manufacturing has the option of purchasing these units from an outside supplier at $10.75 per unit. If the part is outsourced, 40% of the fixed costs cannot be immediately converted to other uses. 

a.  Describe avoidable costs. What amount of the part's production costs is avoidable? 
b.  Should H.J. outsource the part? Why or why not? 
c.  What other items should H.J. consider before outsourcing any of the parts it currently manufactures?
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by s.tung on Mar 6, 2021

wilsonbho

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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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s.tung

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)

rleezy04

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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