1 | 100% | 5g) - giai WY Student Amnine Apply for Financial MACE SELUAL eBook Show Me How Make-or-Buy Decision Zion Manufacturing had always made its components in house. However, Bryce Component Works had recently offered to supply one component, K2. a price of $12 each. Zion uses 4,300 units of Component K2 each year, The cost per unit of this component is as follows: Direct materials $7.85 Direct labor 2.63 1.28 Variable overhead Fixed overhead W 4.00 $15.76 Total The fixed overhead is an allocated expense: none of it would be eliminated if production of Component K2 stopped Required: 1. What are the alternatives facing Zion Manufacturing with respect to production of component K2? 2. List the relevant costs for each alternative. If required, round your answers to the nearest cent. Total Relevant Cost Make per unit per unit Buy per unit Differential Cost to Make Me 70F Cloudy 11 eBook Direct labor Show Me How 2263 Variable overhead 1.28 Fixed overhead 4.00 Total $15.76 The fixed overhead is an allocated expense; none of it would be eliminated if production of Component K2 stopped. Required: 1. What are the Liternatives facing Zion Manufacturing with respect to production of Component K27 2. List the relevant costs for each alternative. If required, round your answers to the nearest cent. Total Relevant Cost