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Author Question: Rockford Company manufactures a part for use in its production of hats. When 10,000 items are ... (Read 87 times)

asmith134

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on: Mar 6, 2021
Rockford Company manufactures a part for use in its production of hats. When 10,000 items are produced, the costs per unit are: 

Direct materials$0.75
Direct manufacturing labor3.00
Variable manufacturing overhead1.50
Fixed manufacturing overhead1.60
Total$6.85

Angel Company has offered to sell to Rockford Company 10,000 units of the part for $6.00 per unit. The plant facilities could be used to manufacture another item at a savings of $9,000 if Rockford accepts the offer. In addition, $1.00 per unit of fixed manufacturing overhead on the original item would be eliminated. 

Required: 
a.What is the relevant per unit cost for the original part?
b.Which alternative is best for Rockford Company? By how much?
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by asmith134 on Mar 6, 2021

aruss1303

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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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asmith134

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Reply 2 on: Mar 6, 2021
Excellent

gcook

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Reply 3 on: Yesterday
Gracias!

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