Terry Inc. manufactures machine parts for aircraft engines. CEO Bucky Walters is considering an offer from a subcontractor to provide 2,500 units of product OP89 for $155,000.

Make or Buy Terry Inc. manufactures machine parts for aircraft engines. CEO Bucky Walters is considering...

Make or Buy Terry Inc. manufactures machine parts for aircraft engines. CEO Bucky Walters is considering an offer from a subcontractor to provide 2,100 units of product OP89 for $121,800. If Terry does not purchase these parts from the subcontractor, it must continue to produce them in-house with these costs: Cost per Unit Direct materials $ 29 Direct labor 17 Variable overhead 15 Allocated fixed overhead 3 Required: 1. What is the relevant cost per unit to make the product...

Space W Inc. manufacturers specialized aerospace parts. A subcontracting opportunity (buying) of providing 2,000 units of...

Space W Inc. manufacturers specialized aerospace parts. A subcontracting opportunity (buying) of providing 2,000 units of Part XCM for $120 000 is being considered. The internal price of Part XCM is as follows; Cost per unit Direct materials $28 Direct labour 18 Variable Overhead 16 Allocated fixed overhead 4 What is the relevant cost (per unit, RND 2 decimal places) to make the part internally? What is the estimated increase/decrease in short-term operating profit of producing the product internally versus...

Space W Inc. manufacturers specialized aerospace parts. A subcontracting opportunity (buying) of providing 2,000 units of...

Space W Inc. manufacturers specialized aerospace parts. A subcontracting opportunity (buying) of providing 2,000 units of Part XCM for $120 000 is being considered. The internal price of Part XCM is as follows; Cost per unit Direct materials $28 Direct labour 18 Variable Overhead 16 Allocated fixed overhead 4 What is the relevant cost (per unit, RND 2 decimal places) to make the part internally? What is the estimated increase/decrease in short-term operating profit of producing the product internally versus...

Question 1: Cost allocation Product A Product B Total sales volume (units) 180 100 280 Revenue...

Question 1: Cost allocation Product A Product B Total sales volume (units) 180 100 280 Revenue $1,000 $6,000 $7,000 Variable costs:   direct materials $200 $400 $600   direct labor $400 $1,000 $1,400 Contribution margin $400 $4,600 $5,000   Fixed costs $4,200 Profit $800 a) Allocate the fixed costs between products A and B. Use direct labor dollars as the cost driver. allocation rate=$   per DL$ allocated costs for A=$    allocated costs for B=$    b) Compute the profit margins for products A and B:...

Webster Corporation is preparing its cash budget for April. The March 31 cash balance is $37,800....

Webster Corporation is preparing its cash budget for April. The March 31 cash balance is $37,800. Cash receipts are expected to be $648,000 and cash payments for purchases are expected to be $612,000. Other cash expenses expected are $27,700 selling and $34,200 general and administrative. The company desires a minimum cash balance at the end of each month of $37,000. If necessary, the company borrows enough cash to meet the minimum using a short-term note. The amount Webster must borrow...

The condensed product-line income statement for Rhinebeck Company for the month of October is as follows:...

The condensed product-line income statement for Rhinebeck Company for the month of October is as follows: Rhinebeck Company Product-Line Income Statement For the Month Ended October 31 Hats Gloves Mufflers Sales $65,700 $90,400 $27,200 Cost of goods sold (26,200) (32,000) (14,200) Gross profit $39,500 $58,400 $13,000 Selling and administrative expenses (28,700) (35,300) (15,000) Operating income (loss) $10,800 $23,100 $(2,000) Fixed costs are 15% of the cost of goods sold and 35% of the selling and administrative expenses. Rhinebeck Company assumes...

Question 2 Smith Ltd manufactures and sells one product. You are presented with the following information...

Question 2 Smith Ltd manufactures and sells one product. You are presented with the following information for the preparation of the annual operating budget for the period ending 31 December 2021: Estimated sales in units are 50,000 units for Quarter 1, 53,000 units for Quarter 2, 62,000 units for Quarter 3, and 65,000 units for Quarter 4. The estimated per unit selling price is $9 for Quarters 1-3, and $10 for Quarter 4. Smith Ltd has set the desired ending...