Allen has received an offer from an outside vendor to supply the upholstery for the chairs Allen requires at $23.00 per chair. The Allen Company produces chairs. This year's expected production is 30,000 units. Currently, Allen makes the upholstery for the chairs in its factory. Allen's management accountant reports the following costs for the upholstery for the 30,000 chairs: (Click to view the information.) Read the requirements Requirement 1. Assume that if the outside vendor supplies the upholstery, the facility where the upholstery is currently made will remain idle. On the basis of financial considerations alone. should Allen accept the outside vendor's offer at the anticipated volume of 30,000 chairs? Show your calculations. (If an input field is not used in the table, leave the input field empty; do not enter a zero.) - X Relevant Costs Make Buy Requirements Direct materials $ 300,000 Direct manufacturing labor 150,000 Variable manufacturing overhead 90,000 1. Assume that if the outside vendor supplies the upholstery, the facility where the upholstery is currently made will remain idle. On the basis of financial considerations alone, should Allen accept the outside vendor's offer Variable inspection, setup, materials at the anticipated volume of 30,000 chairs? Show your calculations. handling 120,000 Coetbis auction DUS that if the robolotoniis cucoboood outside the ouailable unused fooilities will be Purchase cost $ 690,000 $ 660,000 $ 690,000 Total relevant costs Print Done On the basis of financial considerations alone, should Allen accept the outside vendor's offer at the anticipated volume of 30,000 chairs? Allen should not accept the outside vendor's offer at the anticipated volume of 30,000 chairs. Requirement 2. For this question, assume that if the upholstery is purchased outside, the available unused facilities will be used to make pillows to match the chairs. Each pillow costs 525 with a variable cost of $15. No other costs would change and the company expects to sell 10,000 pillows. On the basis of financial considerations alone, should Allen make or buy the upholstery for their chairs, assuming that 30,000 chairs are produced and sold)? Show your calculations. (Enter any deductions with a parentheses or a minus sign. If an input field is not used in the table, leave the input field empty; do not enter a zero.) Relevant Costs Make Buy Direct materials 300000 Data table Direct manufacturing labor 150000 Variable manufacturing overhead 90000 Cost for Variable inspection, setup, materials handling 120000 Cost per Unit 30,000 Units Purchase cost 690000 Direct materials $ 10.00 $ 300,000 Additional contribution margin from selling pillows Variable direct manufacturing labor 5.00 150.000 660000 Total relevant costs Variable manufacturing overhead 3.00 90,000 Variable inspection, setup, materials handling 120.000 Allocated fixed costs of plant administration, taxes, and 105,000 insurance $ 765.000 - Print Done Help me solve this Etext pages Get more help