HELP ANSWER THE INCORRECCT ONES, THANK YOUON THE SECOND PHOTO, ONLY (3.88 & 1.29) ARE INCORRECT Make-or-Buy Decision, Alternatives, Relevant CostsEach year, Basu Company produces 24,000 units of a component used in microwaveovens. An outside supplier has offered to supply the part for $1.29. The unit cost is:Direct materials$0.86Direct labor0.28Variable overhead0.09Fixed overhead2.65Total unit cost$3.88Required:1. What are the alternatives for Basu Company?Make the part in house or buy the part externally2. Assume that none of the fixed cost is avoidable. List the relevant cost(s) of internalproduction.Direct materials, direct labor and variable overheadList the relevant cost(s) of external purchase.Purchase price3. Which alternative is more cost effective and by how much?Making the part in houseby $3.884. What if $19,560 of fixed overhead is rental of equipment used only in production of thecomponent that can be avoided if the component is purchased? Which alternative is morecost effective and by how much?Buying the part from the external supplierby $1.29 Sell at Split-Off or Process Further Decision, Alternatives, Relevant CostsBetram Chemicals Company processes a number of chemical compounds used in producingindustrial cleaning products. One compound is decomposed into two chemicals: anderineand dofinol. The cost of processing one batch of compound is $76,500, and the result is5,900 gallons of anderine and 7,900 gallons of dofinol. Betram Chemicals can sell theanderine at split-off for $9.00 per gallon and the dofinol for $6.00 per gallon. Alternatively,the anderine can be processed further at a cost of $8.10 per gallon (of anderine) intocermine. It takes 3 gallons of anderine for every gallon of cermine. A gallon of cerminesells for $60.Required:1. Which alternative is more cost effective and by how much?NOTE: Do NOT round interim calculations and, if required, round your answer to thenearest dollar.Process it further✓ by $17,1102. What if the production of anderine into cermine required additional purchasing andquality inspection activity? Every 450 gallons of anderine that undergo further processingrequire 17 more purchase orders at $9 each and 17 more quality inspection hours at $26each. Which alternative would be better and by how much?NOTE: Round interim calculations and your final answer to the nearest cent.Process it further✓by9,309 X

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Make-or-Buy Decision, Alternatives, Relevant Costs Each year, Basu Company produces 24,000 units of a component used in microwave ovens. An outside supplier has offered to supply the part for $1.29. The unit cost is: Direct materials $0.86 Direct labor 0.28 Variable overhead 0.09 Fixed overhead 2.65 Total unit cost $3.88 Required: 1. What are the alternatives for Basu Company? Make the part in house or buy the part externally 2. Assume that none of the fixed cost is avoidable. List the relevant cost(s) of internal production. Direct materials, direct labor and variable overhead List the relevant cost(s) of external purchase. Purchase price 3. Which alternative is more cost effective and by how much? Making the part in house by s 3.88 4. What if $19,560 of fixed overhead is rental of equipment used only in production of the component that can be avoided if the component is purchased? Which alternative is more cost effective and by how much? Buying the part from the external supplier by $ 1.29

Make-or-Buy Decision, Alternatives, Relevant Costs Each year, Basu Company produces 24,000 units of a component used in microwave ovens. An outside supplier has offered to supply the part for $1.29. The unit cost is: Direct materials $0.86 Direct labor 0.28 Variable overhead 0.09 Fixed overhead 2.65 Total unit cost $3.88 Required: 1. What are the alternatives for Basu Company? Make the part in house or buy the part externally 2. Assume that none of the fixed cost is avoidable. List the relevant cost(s) of internal production. Direct materials, direct labor and variable overhead List the relevant cost(s) of external purchase. Purchase price 3. Which alternative is more cost effective and by how much? Making the part in house by s 3.88 4. What if $19,560 of fixed overhead is rental of equipment used only in production of the component that can be avoided if the component is purchased? Which alternative is more cost effective and by how much? Buying the part from the external supplier by $ 1.29

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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4. Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound is decomposed into two chemicals: anderine and dofinol. The cost of processing one batch of compound is $76,500, and the result is 5,900 gallons of anderine and 7,900 gallons of dofinol. Betram Chemicals can sell the anderine at split-off for $9.00 per gallon and the dofinol for $6.00 per gallon. Alternatively, the anderine can be processed further at a cost of $8.10 per gallon (of anderine) into cermine. It takes 3 gallons of anderine for every gallon of cermine. A gallon of cermine sells for $60. Required: 1. Which alternative is more cost effective and by how much?NOTE: Do NOT round interim calculations and, if required, round your answer to the nearest dollar. by $fill in the blank 2 2. What if the production of anderine into cermine required additional purchasing and quality…
Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound is decomposed into two chemicals: anderine and dofinol. The cost of processing one batch of compound is $74,000, and the result is 6,000 gallons of anderine and 7,700 gallons of dofinol. Betram Chemicals can sell the anderine at split-off for $11.00 per gallon and the dofinol for $5.50 per gallon. Alternatively, the anderine can be processed further at a cost of $7.90 per gallon (of anderine) into cermine. It takes 4 gallons of anderine for every gallon of cermine. A gallon of cermine sells for $56. Required: 1. Which alternative is more cost effective and by how much?NOTE: Do NOT round interim calculations and, if required, round your answer to the nearest dollar. Process it further by $ 2. What if the production of anderine into cermine required additional purchasing and quality…
Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound is decomposed into two chemicals: anderine and dofinol. The cost of processing one batch of compound is $74,000, and the result is 6,200 gallons of anderine and 7,500 gallons of dofinol. Betram Chemicals can sell the anderine at split-off for $13.00 per gallon and the dofinol for $6.35 per gallon. Alternatively, the anderine can be processed further at a cost of $7.90 per gallon (of anderine) into cermine. It takes 2 gallons of anderine for every gallon of cermine. A gallon of cermine sells for $59. Required: 1. Which alternative is more cost effective and by how much? NOTE: Do NOT round interim calculations and, if required, round your answer to the nearest dollar. by $ 2. What if the production of anderine into cermine required additional purchasing and quality inspection activity?…
Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound is decomposed into two chemicals: anderine and dofinol. The cost of processing one batch of compound is $74,000, and the result is 6,100 gallons of anderine and 8,500 gallons of dofinol. Betram Chemicals can sell the anderine at split-off for $9.00 per gallon and the dofinol for $5.65 per gallon. Alternatively, the anderine can be processed further at a cost of $8.50 per gallon (of anderine) into cermine. It takes 3 gallons of anderine for every gallon of cermine. A gallon of cermine sells for $62. Required: 1. Which alternative is more cost effective and by how much?NOTE: Do NOT round interim calculations and, if required, round your answer to the nearest dollar. by $ 2. What if the production of anderine into cermine required additional purchasing and quality inspection activity?…
Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound is decomposed into two chemicals: anderine and dofinol. The cost of processing one batch of compound is $74,000, and the result is 6,000 gallons of anderine and 8,000 gallons of dofinol. Betram Chemicals can sell the anderine at split-off for $11 per gallon and the dofinol for $6.75 per gallon. Alternatively, the anderine can be processed further at a cost of $8 per gallon (of anderine) into cermine. It takes 3 gallons of anderine for every gallon of cermine. A gallon of cermine sells for $60. Required: 1. Which alternative is more cost effective and by how much? by $ 2. What if the production of anderine into cermine required additional purchasing and quality inspection activity? Every 500 gallons of anderine that undergo further processing require 20 more purchase orders at $10 each…
Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound is decomposed into two chemicals: anderine and dofinol. The cost of processing one batch of compound is $77,000, and the result is 6,000 gallons of anderine and 8,400 gallons of dofinol. Betram Chemicals can sell the anderine at split-off for $11.00 per gallon and the dofinol for $5.60 per gallon. Alternatively, the anderine can be processed further at a cost of $8.60 per gallon (of anderine) into cermine. It takes 4 gallons of anderine for every gallon of cermine. A gallon of cermine sells for $62. Required: 1. Which alternative is more cost effective and by how much? 2. What if the production of anderine into cermine required additional purchasing and quality inspection activity? Every 500 gallons of anderine that undergo further processing require 21 more purchase orders at $11 each…
Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Vihaan Chemicals Company processes a number of chemical compounds used in disinfecting health club fitness equipment. One compound is decomposed into two chemicals: flexalene and soreaphine. The cost of processing one batch of compound is $79,000, and the result is 5,900 gallons of flexalene and 8,500 gallons of soreaphine. Vihaan Chemicals can sell the flexalene at split-off for $11.00 per gallon and the soreaphine for $6.65 per gallon. Alternatively, the flexalene can be processed further at a cost of $7.10 per gallon (of flexalene) into lactine. It takes 4 gallons of flexalene for every gallon of lactine. A gallon of lactine sells for $56. Required: 1. Which alternative is more cost effective and by how much?NOTE: Do NOT round interim calculations and, if required, round the answer to the nearest dollar. by $fill in the blank 2 2. What if the production of flexalene into lactine required additional…
Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Vihaan Chemicals Company processes a number of chemical compounds used in disinfecting health club fitness equipment. One compound is decomposed into two chemicals: flexalene and soreaphine. The cost of processing one batch of compound is $78,000, and the result is 6,500 gallons of flexalene and 7,600 gallons of soreaphine. Vihaan Chemicals can sell the flexalene at split-off for $11.00 per gallon and the soreaphine for $5.80 per gallon. Alternatively, the flexalene can be processed further at a cost of $7.60 per gallon (of flexalene) into lactine. It takes 4 gallons of flexalene for every gallon of lactine. A gallon of lactine sells for $64. Required: 1. Which alternative is more cost effective and by how much? NOTE: Do NOT round interim calculations and, if required, round your answer to the nearest dollar. by $ 2. What if the production of flexalene into lactine required additional purchasing and quality…
Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Vihaan Chemicals Company processes a number of chemical compounds used in disinfecting health club fitness equipment. One compound is decomposed into two chemicals: flexalene and soreaphine. The cost of processing one batch of compound is $71,000, and the result is 5,500 gallons of flexalene and 7,700 gallons of soreaphine. Vihaan Chemicals can sell the flexalene at split-off for $12.00 per gallon and the soreaphine for $7.20 per gallon. Alternatively, the flexalene can be processed further at a cost of $8.60 per gallon (of flexalene) into lactine. It takes 4 gallons of flexalene for every gallon of lactine. A gallon of lactine sells for $65. Required: 1. Which alternative is more cost effective and by how much? NOTE: Do NOT round interim calculations and, if required, round your answer to the nearest dollar. by $fill in the blank 2 2. What if the production of flexalene into lactine required additional…
Idaho Corporation manufactures liquid chemicals A and B from a joint process. Joint costs are allocated on the basis of relative market value at split-off. It costs 4,560 to process 500 gallons of Product A and 1,000 gallons of Product B to the split-off point. The market value at split-off is 10 per gallon for Product A and 14 for Product B. Product B requires an additional process beyond split-off at a cost of 2 per gallon before it can be sold. What is Idaho's cost to produce 1,000 gallons of Product B? A. 5,040 B. 4,360 C. 4,860 D. 5,360 E. 3,360
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