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$90,320 $89,000 S111,000 $112,320 D 13) W.1. Gimsburg Engine Company manufactures part ACT30107 used in several of its engine models. Monthly production costs for 1,090
$90,320 $89,000 S111,000 $112,320 D 13) W.1. Gimsburg Engine Company manufactures part ACT30107 used in several of its engine models. Monthly production costs for 1,090 units are as follows: Direct materials $46.000 Direct labor 10.500 Variable overhead costs 32,500 Fixed overhead costs 22.000 Total coste SW.000 It is estimated that of the foed overhead costs assigned to ACTX107 will no longer be incurred if the company purchases ACT 2010 from the outside supplier. W.T Ginsburg Ingine Company has the option of purchasing the part from an outside supplier at 0.75 per unit. If the company accepts the offer from the outside supplier, the monthly avoidable costs (coats that will no longer be incurred) total
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