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shayanbk shayanbk
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4 months ago
Pueblo Production Company manufactures 50,000 high-definition televisions each year. Pueblo is considering purchasing the glass screens from an outside source rather than producing them internally. The following data relate to the glass screens:

Cost per screen from outside supplier$32.50
Internal costs per screen:​
    Direct materials17.50
    Direct labor8.25
    Variable overhead2.60
Total fixed overhead67,000
Avoidable fixed overhead50,400

What is the total relevant cost to internally produce 50,000 glass screens?

▸ $1,484,500

▸ $1,625,000

▸ $1,417,500

▸ $1,467,900
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Managerial Accounting

Managerial Accounting


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mattloftergenermattloftergener
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More solutions for this book are available here
$1,467,900

[($17.50 + $8.25 + $2.60) × 50,000] + $50,400 = $1,467,900
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shayanbk Author
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I appreciate what you did here, answered it right Smiling Face with Open Mouth
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Thanks for your help!!
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