Accounting Principles II Quiz: Chapter 25 Quiz This Question: 1 pt 4 of 4 (0 com

Question

Accounting Principles II Quiz: Chapter 25 Quiz This Question: 1 pt 4 of 4 (0 complete) Sensor Systems manufactures an optical switch that it uses in its final product. The EEB (Clck the icon to view the costs) switch has the following manufacturing costs per unit (Click the icon to view additional information ) Prepare an outsourcing analysis to determine wbether Sensor Systems should make or buy the switch. (For the Difilerence column, use a minus sign or parentheses only when the co Make Outsource Difference optical switch optical switch (Make Outsource) Variable costs Direct materials Direct labor Varniable overhead Purchase price from outsider Total differential cost per unit Decision Enter any number in the edit fields and then continue to the next question. O Type here to search

Explanation / Answer

Make Outsource Difference Switch Switch Variable cost Direct material 8 8 Direct labour 3 3 variable Overheads 7 7 Purchase price from outsider 20 -20 Total differential cost per unit 18 20 -2 Decision: Make the switch

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