Alphabrona industries manufactures 50,000 components per year. the manufacturing cost of the components was determined as follows:

direct materials $ 80,000
direct labor 100,000
variable overhead 30,000
fixed overhead 60,000
total $270,000

an outside supplier has offered to sell the component for $10. fixed costs will remain the same if the component is purchased from an outside supplier. what is the effect on income if alphabrona industries purchases the component from the outside supplier?

a.$290,000 decrease
b.$45,000 decrease
c.$290,000 increase
d.$45,000 increase

The plastic flowerpots company has two manufacturing departments, molding and packaging. at the beginning of the month, the molding department has 2,100 units in inventory, 70% complete as to materials. during the month, the molding department started 18,500 units. at the end of the month, the molding department had 3,150 units in ending inventory, 80% complete as to materials. units completed in the molding department are transferred into the packaging department. cost information for the molding department for the month follows: beginning work in process inventory (direct materials) $ 1,300 direct materials added during the month 28,900 using the weighted-average method, compute the molding department's (a) equivalent units of production for materials and (b) cost per equivalent unit of production for materials for the month. (round "cost per equivalent unit of production" to 2 decimal places.)

Greater concern for innovation and quality has shifted the job trend to using more broadly defined jobs. t/f

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