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  • Buy or Make: (Not Relevant) (Not Relevant)

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    Muhammad Riddwan Firdaus
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    This document compares the costs of making a product versus buying it from an outside supplier. It lists the direct materials, direct labor, variable overhead, and supervisor's salary costs to make 8,000 units totaling $112,000. The outside purchase price to buy the same amount is $152,000, making it $40,000 more expensive to buy rather than make the units.

    Original Description:

    materi akmen

    Original Title

    pengambilan keputusan

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    This document compares the costs of making a product versus buying it from an outside supplier. It lists the direct materials, direct labor, variable overhead, and supervisor's salary costs to make 8,000 units totaling $112,000. The outside purchase price to buy the same amount is $152,000, making it $40,000 more expensive to buy rather than make the units.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    9 views1 page

    Buy or Make: (Not Relevant) (Not Relevant)

    Uploaded by

    Muhammad Riddwan Firdaus
    This document compares the costs of making a product versus buying it from an outside supplier. It lists the direct materials, direct labor, variable overhead, and supervisor's salary costs to make 8,000 units totaling $112,000. The outside purchase price to buy the same amount is $152,000, making it $40,000 more expensive to buy rather than make the units.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    BUY OR MAKE

    Make Buy

    Direct materials (8,000 units @ $6 per unit). . . . . . . . . . . . . . . $ 48,000

    Direct labor (8,000 units @ $4 per unit) . . . . . . . . . . . . . . . . . . 32,000

    Variable overhead (8,000 units @ $1 per unit) . . . . . . . . . . . . . 8,000

    Supervisor’s salary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,000

    Depreciation of special equipment (not relevant)

    Allocated general overhead (not relevant)

    Outside purchase price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $152,000

    Total cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $112,000 $152,000

    Difference in favor of continuing to make . . . . . . . . . . . . . . . . . $40,000

    Note : ingat relevant dan irrelevant cost

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