rg the lcaves. A locaing t xad ovarhead deproclanon on te iatchen equp mont and
ID: 2600263 • Letter: R
Question
rg the lcaves. A locaing t xad ovarhead deproclanon on te iatchen equp mont and buld ng based on arcct labor assigns 51 Lti ct txad o arhaad per 1 Dat Morc at the nxed costs are avodable. I he loca bakery bdu d char e ore Yard $ 1 1. What is l7s abs nic" cost of making he tread r-house? what ine varit le cust per lur? 3. Ih addiion to the finarc alaralyss, what elze should Oive Yard cons der when making this decizion? . What is the atzorpticn coat of maling the tread in hauc? What s th varibl cazt per loa? Olive Yard Outsourcing Decision Absorption Costing) Ful (absorpton) coel per lof Ducisia 3. Ih addiion to the fierc alaralyss, what else shoud Oive Yard consder when making this decizian? O A. Wl the lccl bascry mact ry mect their deliery tme roquncments? O D. Alof the aboe O L. Nans ofthe atExplanation / Answer
1. Outsourcing Decision (Absorption Costing)
2. Yes since the variable cost/relevant cost of making each loaf is less than the cost of outsourcing each loaf.
3.
D. All of the above.
Direct material $0.52 Direct labor 0.71 Variable overhead 0.22 Variable cost per loaf $1.45 Fixed overhead 1.06 Full (absorption) cost per loaf $2.51Related Questions
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