Anderson Company Uses 10,000 Units of a Part in Its

question 133

Multiple Choice

Anderson Company uses 10,000 units of a part in its production process.The costs to make a part are: direct material,$12; direct labor,$25; variable overhead,$13; and applied fixed overhead,$30.Anderson has received a quote of $55 from a potential supplier for this part.If Anderson buys the part,70 percent of the applied fixed overhead would continue.Anderson Company would be better off by

• A)$50,000 to manufacture the part.
• B)$150,000 to buy the part.
• C)$40,000 to buy the part.
• D)$160,000 to manufacture the part.

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Definitions:

Unintentional

Actions or behaviors that occur without deliberate planning or intent.

Sexual Assault

An act in which a person intentionally sexually touches another person without that person's consent, or coerces or physically forces a person to engage in a sexual act against their will.

Cultural Beliefs

Shared values, norms, and practices that are learned from society and guide behavior and perceptions.

Interpersonal Violence

Violence that occurs between individuals who know each other, such as partners, family members, friends, or colleagues.