Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same. Case A Case B Case C
Direct materials used $(a) $88,600 $67,000
Direct labor 54,900 144,000 (h)
Manufacturing overhead applied45,018 (d) (i)
Total manufacturing costs 148,000 (e) 222,600
Work in process 1/1/14 (b) 19,300 18,400
Total cost of work in process 204,400 (f) (j)
Work in process 12/31/14 (c) 14,700 (k)
Cost of goods manufactured 195,200 (g) 228,100

Make or buy eastside company incurs a total cost of $120,000 in producing 10,000 units of a component needed in the assembly of its major product. the component can be purchased from an outside supplier for $11 per unit. a related cost study indicates that the total cost of the component includes fixed costs equal to 50% of the variable costs involved. a. should eastside buy the component if it cannot otherwise use the released capacity? present your answer in the form of differential analysis. use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers. cost from outside supplier $answer variable costs avoided by purchasing answer net advantage (disadvantage) to purchase alternative $answer b. what would be your answer to requirement (a) if the released capacity could be used in a project that would generate $50,000 of contribution margin? use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers.