1. Parks Corporation currently manufactures 3,000 staplers annually for its main product. The costs per stapler are as follows: Direct materials Direct labor Variable overhead Fixed overhead Total $ 3.00 7.00 4.00 7.00 $21.00 Gallup Company has contacted Parks with an offer to sell it 3,000 staplers for $18.00 each $5 of the fixed overhead per unit is unavoidable.

Principles of Accounting Volume 2
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Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...
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please provide answer with compulsory explanation , computation for each parts , steps clearly and completely answer in text form please remember need explanation and computation for every calculation

1. Parks Corporation currently manufactures 3,000 staplers annually for its main product.
The costs per stapler are as follows:
Direct materials
Direct labor
Variable overhead
Fixed overhead
Total
$ 3.00
7.00
4.00
7.00
$21.00
Gallup Company has contacted Parks with an offer to sell it 3,000 staplers for $18.00
each. $5 of the fixed overhead per unit is unavoidable.
Instructions
Prepare an incremental analysis for the make-or-buy decision.
Transcribed Image Text:1. Parks Corporation currently manufactures 3,000 staplers annually for its main product. The costs per stapler are as follows: Direct materials Direct labor Variable overhead Fixed overhead Total $ 3.00 7.00 4.00 7.00 $21.00 Gallup Company has contacted Parks with an offer to sell it 3,000 staplers for $18.00 each. $5 of the fixed overhead per unit is unavoidable. Instructions Prepare an incremental analysis for the make-or-buy decision.
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