A B C D E F G H J K 1 2 3 4 S 6 7\ 8 19 Part U67 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the 15.300 units of the part that are needed every year. Direct materials Direct labour Variable overhead Supervisor's salary Allocated general overhead $2.20 $3.20 $6.00 $6.50 $4.70 An outside supplier has offered to make the part and sell it to the company for $25.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $21,300 of these allocated general overhead costs would be avoided. 10 11 Required: 12 a. What are the total relevant costs of making and buying Part U67? (7 marks) 13 14 15 16 17 18 19 20 21 22 23 24 Number of units Per Unit Total Make Buy Make Buy Total relevant costs 25 b. Should the company make or buy the part? (1 mark) 26 27 Decision: 28 29 Reason: