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Author Question: Mountaineer, Inc. currently makes 6,000 pairs of weatherproof hiking boots each year. The boots sell ... (Read 73 times)

xxxxxxxxxxxx

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on: Feb 5, 2023
Mountaineer, Inc. currently makes 6,000 pairs of weatherproof hiking boots each year. The boots sell for $119. Mountaineer has been manufacturing the boots and applying the weatherproofing as the final process before packaging. However, the company is concerned about the costs associated with the weatherproofing process. The company is concerned that the EPA will not approve of their disposal of the residue from the process, resulting in heavy monetary penalties. Mountaineer has found a manufacturing company that can waterproof the boots and package them at a cost of $18 each. If the company outsources the waterproofing and packaging of the boots, its insurance premiums will be reduced. Mountaineer's standard cost of the waterproofing and packaging process for one unit is listed below.

Direct material ($1 for waterproofing and $4 for packaging)$  5
Direct labor (waterproofing and packaging by a single employee)3
Variable overhead ($6 for waterproofing and $2 for packaging)8
Direct fixed overhead (Insurance)6
Non-differential fixed overhead   8
Total unit cost$30

Required:

Should Barber outsource the waterproofing and packaging? Why?
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by xxxxxxxxxxxx on Feb 5, 2023

khammond77

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Reply #1 on: Feb 5, 2023
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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xxxxxxxxxxxx

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Reply 2 on: Feb 5, 2023
Gracias!

billybob123

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

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