Almond Treats manufactures various types of cereals that feature almonds. Acme Cereal Company has approached Almond Treats with a proposal to sell the company its top selling cereal at a price of...


Almond Treats manufactures various types of cereals that<br>feature almonds. Acme Cereal Company has approached<br>Almond Treats with a proposal to sell the company its top<br>selling cereal at a price of $22,200 for 20,000 pounds. The<br>costs shown are associated with production of 20,000<br>pounds of almond cereal:<br>Direct material<br>$13,100<br>Direct labor<br>4,900<br>Manufacturing overhead<br>6,900<br>Total<br>$24,900<br>The manufacturing overhead consists of $2,100 of variable<br>costs with the balance being allocated to fixed costs.<br>A. Calculate the differential cost of Acme?<br>B. Should Almond Treats make or buy the almond cereal?<br>

Extracted text: Almond Treats manufactures various types of cereals that feature almonds. Acme Cereal Company has approached Almond Treats with a proposal to sell the company its top selling cereal at a price of $22,200 for 20,000 pounds. The costs shown are associated with production of 20,000 pounds of almond cereal: Direct material $13,100 Direct labor 4,900 Manufacturing overhead 6,900 Total $24,900 The manufacturing overhead consists of $2,100 of variable costs with the balance being allocated to fixed costs. A. Calculate the differential cost of Acme? B. Should Almond Treats make or buy the almond cereal?

Jun 02, 2022
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