143 Question List Current Attempt in Progress The management of Sheridan Mandacturing Company is trying to decide whether to continue manufacturing a part or to buy it from in outside supplier. The part, called Cisco, la component of the company's finished product Question 1 23 Viewing Question 2 - 25 The following information was collected from the accounting records and production data for the year ending December 31, 2022 1.8.000 units of CISCO were produced in the Machining Department 2 Variable manufacturing costs applicable to the production of each CISCO it were: direct materiak $ 460, direct labor $4.19, indirect labor $0.42, utilities $0.40 3. Fixed marfacturing costs applicable to the production of CISCO were Questions 25 Question 4 25 Cost Item Direct Total Allocated $920 52820 Depreciation Property taxes $ 1.900 540 270 810 Insurance 870 630 1.500 $3310 $1,820 5.130 All variable manufacturing and direct food costs will be eliminated CISCO is purchased Allocated costs will not be eliminated in CISCO is purchased Soil CISCO is purchased the fixed manufacturing costs allocated to CISCO will have to be absorbed by other production departments 4. The lowest quotation for 8.000 CISCO units from a supplier is $ 77,520 5. CISCO units are purchased freight and inspection costs would be $d 14 per unit and receiving costs totaling $ 1.300 per year would be incurred by the Machining Department ished their . Question List X Make CISCO Net Income Increase Decreased Buy CISCO Question Direct material $ $ Viewing Question 2 2 Direct labor Indirector Question A Utilities Question Depreciation Property taxes Insurance Purchase price Freight and inspection Receiving costs Total annual cost 5