5. Diviney's Dolls has been purchasing dresses for its dolls at a delivered cost of $40 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 50% of direct labor cost. The fully absorbed unit costs to produce dresses are expected to be as follows: Direct materials Direct labor Factory overhead Total cost per unit $ 13 20 10 $ 43 If Diviney's Dolls manufactures the dresses, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 10% of the direct labor costs. Diviney's Dolls purchases 10,000 dresses each year. Should Diviney's Dolls make or buy the dresses? Will Diviney's Dolls be richer or poorer if the firm makes the dresses? Compute the annual amount. Show work.

5. Diviney's Dolls has been purchasing dresses for its dolls at a delivered cost of $40 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 50% of direct labor cost. The fully absorbed unit costs to produce dresses are expected to be as follows: If Diviney's Dolls manufacturis the dresses, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 10% of the direct labor costs. Diviney's Dolls purchases 10,000 dresses each year. Should Diviney's Dolls make or buy the dresses? Will Diviney's Dolls be richer or poorer if the firm makes the dresses? Compute the annual amount. Show work. 5. Diviney's Dolls has been purchasing dresses for its dolls at a delivered cost of $40 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 50% of direct labor cost. The fully absorbed unit costs to produce dresses are expected to be as follows: If Diviney's Dolls manufacturis the dresses, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 10% of the direct labor costs. Diviney's Dolls purchases 10,000 dresses each year. Should Diviney's Dolls make or buy the dresses? Will Diviney's Dolls be richer or poorer if the firm makes the dresses? Compute the annual amount. Show work