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Home Q & A Board Other Fields Homework Help Business Accounting
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bosoxsilva bosoxsilva
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5 years ago
Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows:

Direct materials$51.00
Direct labor43.00
Variable overhead38.00
Fixed overhead33.00
Total$165.00

Crayola Technologies Inc. has contacted Rubium with an offer to sell 10,000 of the subassemblies for $138.00 each. Rubium will eliminate $89,000 of fixed overhead if it accepts the proposal.  What are the relevant costs for Rubium?
A) $929,000
B) $1,029,000
C) $1,409,000
D) $1,739,000
Textbook 
Cost Accounting: A Managerial Emphasis

Cost Accounting: A Managerial Emphasis


Edition: 16th
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wrote...
#1
5 years ago
 C
Explanation:  The relevant costs for Rubium = [($51.00 + $43.00 + $38.00)  10,000 + $89,000] = $1,409,000
bosoxsilva Author
wrote...
#2
5 years ago
Marking this solved, moving on to the next...
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