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10 Required Information The following information applies to the questions displayed below! Redbud Company uses a certain part in its manufacturing process that it buys

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10 Required Information The following information applies to the questions displayed below! Redbud Company uses a certain part in its manufacturing process that it buys from an outside supplier for $36 per pan plus another $6 for shipping and other purchasing-related costs. The company will need 18.000 of these parts in the next year and is considering making the part internally. After performing a capacity analysk, Redbud determined that it has sufficient unused capacity to manufacture the 18.000 parts but would need to hire a manager at an annual salary of $54,000 to oversee this production activity. Estimated production costs are determined to be as follows: Part 1 of 3 0.78 points Direct material Direct labor Variable overhead Fixed overhead (includes manager at $3 per unit) Total unit cost Print Required: a. Identify the relevant costs to make this part internally. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect) References 7 Historical cost Direct labor 7 Direct material 7 Variable overhead 2 Fixed overhead 7 New manager's salary 11 Next? The following information applies to the questions displayed below) of 3 Redbud Company uses a certain part in its manufacturing process that it buys from an outside super for $6 per part plus another $5 for shipping and other purchasing-related costs. The company will need 18,000 of these parts in the new year and is considering making the part intemally. Aner performing capacity , Redbu determined sufficient unused capacity to manufacture the 18.000 parts but would need to hire a manager at an annual salary of $54,000 to oversee this production activity. Estimated production costs are determined to be s om 523 Direct material Direct labor Variable overhead Fixed overhead (includes manager at $3 per unit) Total unit cost 8 b. Should Redbud produce the part or continue to buy it from the outside supplier? erences Multiple Choice Redbud is indifferent about the decision O Redbud should produce the part of 19 Next > Redbud should continue to buy it from the outside supplier 11

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