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ACC-650 TOPIC 5 Assignment Question 3 of 11 View Policies < > 1/4 E Show Attempt History Current Attempt in Progress The Culver Company
ACC-650 TOPIC 5 Assignment Question 3 of 11 View Policies < > 1/4 E Show Attempt History Current Attempt in Progress The Culver Company manufactures 4,100 units of a part that could be purchased from an outside supplier for $16 each. Culver's costs to manufacture each part are as follows: Direct materials Direct labor $4 3 Variable manufacturing overhead 6 Fixed manufacturing overhead 10 Total $23 All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no alternative uses. (a-b) Your answer is partially correct. (a) Calculate relevant cost to make. Relevent cost to make $ 23.00 per unit (b) Should Culver continue to manufacture the part? Yes eTextbook and Media Save for Later Attempts: 2 of 3 used Submit Answer (c-d) (c) If Culver could lease the manufacturing facilities to another company for $24,100 per year, what would be the net total cost to outsource production of the part? Net cost to buy $ (d) Should Culver outsource production of the part given the opportunity to lease the facilities? eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer
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