Damon Industries Manufactures 20,000 Components Per Year An Outside Supplier Has Offered to Sell the Component for the Components

question 66

Multiple Choice

Damon Industries manufactures 20,000 components per year.The manufacturing cost of the components was determined as follows:
$$\begin{array} { | l | r | } \hline \text { Direct materials } & \$ 100,000 \\\hline \text { Direct labor } & 160,000 \\\hline \text { Variable manufacturing overhead } & 60,000 \\\hline \text { Fixed manufacturing overhead } & 80,000 \\\hline\end{array}$$

An outside supplier has offered to sell the component for $17.If Damon purchases the component from the outside supplier,the manufacturing facilities would be unused and could be rented out for $10,000.If Damon purchases the component from the supplier instead of manufacturing it,the effect on income would be:

• A) a $70,000 increase.
• B) a $50,000 decrease.
• C) a $10,000 decrease.
• D) a $30,000 increase.

Illustrate the role of impression management and self-fulfilling prophecy in social interactions.

Understand the positive and negative effects of workplace conflict.

Recognize legal and illegal behaviors in the workplace, including harassment and discrimination.

Describe the consequences of sexual harassment on job satisfaction and commitment.

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Definitions:

Worksheet

A paper or digital document used to organize and simplify the preparation of financial statements or for planning purposes in accounting.

Adjusting Entries

Journal entries made at the end of an accounting period to update account balances before preparing financial statements.

Financial Statements

Documents that provide an overview of a company's financial condition, including the balance sheet, income statement, and cash flow statement.

Journalized

The process of recording transactions in a journal before they are posted to the general ledger in accounting.