What are the fixed overhead costs of making the component, Accounting Basics

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What are the fixed overhead costs of making the component

Bell's Shop can make 1,000 units of a necessary component with the following costs:

Direct Materials $72,000
Direct Labor 18,000
Variable Overhead 9,000
Fixed Overhead ?

The company can purchase the 1,000 units externally for $117,000. The avoidable fixed costs are $6,000 if the units are purchased externally. An analysis shows that at this external price, the company is indifferent between making or buying the part. What are the fixed overhead costs of making the component?

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Accounting Basics: What are the fixed overhead costs of making the component

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Accounting Basics: What are the fixed overhead costs of making the component

Reference No:- TGS0703642

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Determine how much is the conversion cost per unit

Q : How many units were transferred out of the process in june

Q : Abel total stockholders

Q : What is the balance in the paid in capital

Q : What are the fixed overhead costs of making the component

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Q : How much will profits increase or decrease for the year

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: What are the fixed overhead costs of making the component

Reference No:- TGS0703642

Recent Questions Asked Accounting Basics

Q : Determine how much is the conversion cost per unit

Q : How many units were transferred out of the process in june

Q : Abel total stockholders

Q : What is the balance in the paid in capital

Q : What are the fixed overhead costs of making the component

Q : Determine how much money earned

Q : What amount is transferred from retained earnings

Q : When the market rate of interest

Q : How much will profits increase or decrease for the year

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