2.5

Dior, Ltd. manufactures a variety of parts used in automobiles. An outside supplier has offered to produce one type of carburetor to Dior, Ltd., for a cost of $26 per unit. To evaluate this offer, Dior, Ltd. has gathered the following unit cost information relating to its own cost of producing the carburetor internally: Direct materials $10 Direct labor $5 VOH $3 FOH, traceable $9* *one-third supervisory salary, two-thirds depreciation of equipment already owned What is the total relevanct costs per unit? a. $21 b. $23 c. $24 d. $27