Spahr Company produces a part that is offered in the manufacture of one of its assets. The unit production prices of this component, assuming a manufacturing level of 5,000 systems, are as follows:

Direct material $2

Direct Labor 4

Variable manufacturing overhead 3

Fixed manufacturing overhead 1

Total cost $10

The fixed overhead costs are unavoidable

Assume spahr firm deserve to purchase 5000 units of the component from allgood firm for $13.50 each and also the framework presently offered to make the part can be used to manufacture 5000 systems of one more product that would have a $6 per unit contribution margin. If no extra solved costs would certainly be incurred, what need to spahr company do? Support your answer with the calculation and also the change in operating revenue (profit).




You are watching: Products that are in the process of being manufactured but are not yet complete are called:

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27) Spahr Company kind of produces a component that is provided in the manufacture of one of its commodities. The unit manufacturing costs of this part, assuming a production level of 5,000 units, are as follows: Direct materials Direct labor Variable production overhead Fixed production overhead Total expense S2 $10 The fixed overhead prices are inescapable. Assume Spahr Company deserve to purchase 5,000 devices of the part from Allgood Company kind of for $13.50 each, and the infrastructure presently supplied to make the component could be provided to manufacture 5,000 units of one more product that would certainly have actually a $6 per unit contribution margin. If no additional fixed expenses would certainly be incurred, what need to Spahr Company do? Support your answer with the calcaions and also the hange in operating revenue (profit). (7 points)
Show transcribed picture message 27) Spahr Company kind of produces a part that is provided in the manufacture of among its products. The unit manufacturing prices of this part, assuming a production level of 5,000 systems, are as follows: Direct materials Direct labor Variable production overhead Fixed production overhead Total price S2 $10 The solved overhead costs are inevitable. Assume Spahr Company type of have the right to purchase 5,000 units of the part from Allgreat Company kind of for $13.50 each, and also the framework currently used to make the component could be provided to manufacture 5,000 systems of an additional product that would certainly have a $6 per unit contribution margin. If no extra solved costs would be incurred, what have to Spahr Company do? Support your answer through the calcaions and the hange in operating earnings (profit). (7 points)
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Inquiry 31 (1 point) Products that are in the process of being made however are not yet complete are called: A) Work in process inventory O B) Cost of items marketed. C) Conversion prices. D) Finiburned items inventory E) Raw materials inventory.
Sexactly how transcribed photo message Inquiry 31 (1 point) Products that are in the procedure of being manufactured however are not yet complete are called: A) Work in procedure inventory O B) Cost of items marketed. C) Conversion expenses. D) Finished goods inventory E) Raw materials inventory.


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