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$3.50 EXERCISE 13-11 Make or Buy Decision L013-3 Han Products were 30.000 units of part 56 each year the use on its production time. At

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$3.50 EXERCISE 13-11 Make or Buy Decision L013-3 Han Products were 30.000 units of part 56 each year the use on its production time. At this level of sativitythe cost per Pape 105 unit for part 56 Direct materials Direct labor 10.00 Variable manufatting hand 2.40 Fesent manufacturing overhead Total cost perut 525.00 Allotside supplier has offered to sell 20.000 units of part 56 each year to Ho Products for 2 per part I Han Produits secepts this offer the facilities now being used to manufacture part S6 could be tested to another company at an antal rental of $50.000 How Han Products has determined that two thinds of the fored manufacturing overhead being applied to part $6 would continue even if port 56 were prochased from the outske suppliet. Required: Wat is the financial advantare (diacrutare) e accepting the outside oppler's offer? Exercise 13-4 (Algo) Special Order Decision [LO13-4] Imperial Jewelers manufactures and sells a gold bracelet for $403.00. The company's accounting system says that the unit product cost for this bracelet is $274.00 as shown below: Direct materials $147 Direct labor 90 Manufacturing overhead 37 Unit product cost $274 The members of a wedding party have approached Imperial Jewelers about buying 13 of these gold bracelets for the discounted price of $363.00 each. The members of the wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by S6 Imperial Jewelers would also have to buy a special tool for $469 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order opportunity. Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period However, $7.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party's order using its existing manufacturing capacity Required: 1. What is the financial advantage (disadvantage of accepting the special order from the wedding party? 2. Should the company accept the special order

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