Make or Buy, Traditional Analysis Wehner Company is currently manufacturing Part ABS-43, producing 54,900 units annually....
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Make or Buy, Traditional Analysis Wehner Company is currently manufacturing Part ABS-43, producing 54,900 units annually. The part is used in the production of several products made by Wehner, The cost per unit for ABS-43 is as follows: $43.00 Direct materials Direct labor Vanable overhead 2.35 8.90 Fixed overhead Total 4.50 $58.85 Of the total fixed overhead assigned to ABS-43, $16,086 is direct Foxed overhead (the annual lease cost of machinery used to manufacture Part ABS-43), and the remainder is comme fixed overhead. An outside supplier has offered to sell the part to Wahner for $54.12. There is no alternative use for the facilities currently used to produce the part. No significant now unit-based overhead costs are incurred. Required: 1. Should Wehner Company make or buy Part ABS-437 Wehner should the part. This will produce total cost savings of s 2. What is the maximum amount per unit that Wehner would be willing to pay to an outside supplier? Round your answer to the nearest cent. Check My Work per unit Previous Next Make or Buy, Traditional Analysis Wehner Company is currently manufacturing Part ABS-43, producing 54,900 units annually. The part is used in the production of several products made by Wehner, The cost per unit for ABS-43 is as follows: $43.00 Direct materials Direct labor Vanable overhead 2.35 8.90 Fixed overhead Total 4.50 $58.85 Of the total fixed overhead assigned to ABS-43, $16,086 is direct Foxed overhead (the annual lease cost of machinery used to manufacture Part ABS-43), and the remainder is comme fixed overhead. An outside supplier has offered to sell the part to Wahner for $54.12. There is no alternative use for the facilities currently used to produce the part. No significant now unit-based overhead costs are incurred. Required: 1. Should Wehner Company make or buy Part ABS-437 Wehner should the part. This will produce total cost savings of s 2. What is the maximum amount per unit that Wehner would be willing to pay to an outside supplier? Round your answer to the nearest cent. Check My Work per unit Previous Next
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