A7 VXfVariable manufacturing overhead 1 Alanco, Inc. manufactures a variety of products and is currently maunfacturing all of its own component parts 2 An outside supplier has offered to sell one of those components to Alanco. To evaluate this offer, the following 3 information has been gathered relating to the cost of producing the component internally 4 5 Direct materials 6 Direct labor 7| Variable rmanufacturing overhead 8 Fixed manufacturing overhead, traceable* 9Fixed manufacturing overhead, common but allocated 10 Total cost 4.00 6.00 2.00 5.00 8.00 25.00 21.00 12 Supplier price 13 14 Units used per year 15 16 *Fixed manufacturing overhead, traceable is composed of two items: 17 18 19 12,000 Depreciation of equipment (no resale value) Supervisor salary 30% 70%