Lean Foods produces a variety of snack products including fried pork rinds. The cost of one batch of pork rinds is below: $$\begin{array} { l r }
\text { Direct materials } & \$ 12.00 \
\text { Direct labor } & 10.00 \
\text { Variable overhead } & 7.00 \
\text { Fixed overhead } & 9.00
\end{array}$$ An outside supplier has offered to produce the pork rinds for $25 per batch. How much will Lean save if it accepts the offer?

Question

Lean Foods produces a variety of snack products including fried pork rinds. The cost of one batch of pork rinds is below: $$\begin{array} { l r } 
\text { Direct materials } & \$ 12.00 \
\text { Direct labor } & 10.00 \
\text { Variable overhead } & 7.00 \
\text { Fixed overhead } & 9.00
\end{array}$$ An outside supplier has offered to produce the pork rinds for $25 per batch. How much will Lean save if it accepts the offer?

Quizplus · Accepted Answer

The Answer of Lean Foods produces a variety of snack products including fried pork rinds. The cost of one batch of pork rinds is below: $$\begin{array} { l r } 
\text { Direct materials } & \$ 12.00 \
\text { Direct labor } & 10.00 \
\text { Variable overhead } & 7.00 \
\text { Fixed overhead } & 9.00
\end{array}$$ An outside supplier has offered to produce the pork rinds for $25 per batch. How much will Lean save if it accepts the offer?

Lean Foods Produces a Variety of Snack Products Including Fried