Business
Business, 15.04.2021 19:10, alex7881

Exercise 12-5 Ayayai Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 63% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $3.59 and $4.97, respectively. Normal production is 32,100 curtain rods per year. A supplier offers to make a pair of finials at a price of $13.37 per unit. If Ayayai accepts the supplier’s offer, all variable manufacturing costs will be eliminated, but the $49,400 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. Partially correct answer. Your answer is partially correct. Try again. Prepare the incremental analysis for the decision to make or buy the finials. (Round answers to 0 decimal places, e. g. 1250. If amount decreases net income then enter the amount using either a negative sign preceding the number e. g. -45 or parentheses e. g. (45).)

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Exercise 12-5 Ayayai Inc. has been manufacturing its own finials for its curtain rods. The company i...

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