Crane’s manufacturing company can make 100 units of a necessary component part with the following costs:

direct materials $129000
direct labor 34000
variable overhead 48000
fixed overhead 3

if crane’s manufacturing company can purchase the component externally for $215000 and only $8000 of the fixed costs can be avoided, what is the correct make-or-buy decision?

On december 31, 2013, coronado company issues 173,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $10. the fair value of the sars is estimated to be $5 per sar on december 31, 2014; $2 on december 31, 2015; $10 on december 31, 2016; and $8 on december 31, 2017. the service period is 4 years, and the exercise period is 7 years. prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan.