Credell Company Uses 12,000 Units of a Part in Its

question 43

Multiple Choice

Credell Company uses 12,000 units of a part in its production process.The costs to make a part are: direct material,$15; direct labor,$27; variable overhead,$15; and applied fixed overhead,$32.Anderson has received a quote of $60 from a potential supplier for this part.If Credell buys the part,75 percent of the applied fixed overhead would continue.Credell Company would be better off by

• A)$30,000 to manufacture the part.
• B)$348,000 to buy the part.
• C)$60,000 to buy the part.
• D)$216,000 to manufacture the part.

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Definitions:

Corporate Social Responsibility

A business model where companies integrate social and environmental concerns in their operations and interactions with stakeholders.

Social Well-Being

The condition in which an individual and community experience health, happiness, and prosperity, reflecting overall quality of life.

Agricultural Initiatives

Programs or actions taken to improve or support the agricultural sector, often aiming at sustainability, efficiency, and productivity improvements.

Common Measures Bias

A bias that occurs when survey respondents use common scales to make their answers seem more socially acceptable or favorable.