8/12 You are a manager at a company that makes customized insulated lunch bags. Your marketing efforts have paid off, and you are expecting demand for an additional 5,000 lunch bags this year. While your factory has the capacity to handle the additional demand, a potential supplier has offered to make the 5,000 bags for $12 per bag. Other information from the financial accounting system is listed below. What is the total cost if you decide to make the bags rather than buy them from the supplier? Insulated lunch bag Direct material $6.28 Direct labor $1.01 Manufacturing overhead: variable $1.07 Manufacturing overhead: fixed $0.97 Total manufacturing cost $9.33 Non-manufacturing overhead: variable $1.11 Non-manufacturing overhead: fixed $1.24 Total cost $11.68 Insulated lunch bag price $19.00 Machine hour 0.74