Rowan Quinn Company manufactures kitchen appliances. Current…

Rowan Quinn Company manufactures kitchen appliances. Currently, it is manufacturing one of its components at a variable cost of $40 and fixed costs of $15 per unit. An outside provider of this component has offered to sell Rowan Quinn the component for $45. What is the best plan and what are the savings assuming fixed costs are unaffected by the decision?

A manufacturing company applies factory overhead based on di…

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $449,802 and direct labor hours would be 49,978. Actual factory overhead costs incurred were $432,976, and actual direct labor hours were 50,113. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?