are required per unit of product For August, the company budgeted to work 180,000 direct labour hours and to incur the following total manufacturing overhead costs $237,600 Total variable overhead costs $198.000 Total fixed overhead costs During August, the company completed 28,000 units of product, worked 172,000 direct labour-hours, and incurred the following total manufacturing overhead costs Total variable overhead costs Total fixed overhead costs $197,800 $230,600 The denominator activity in the predetermined overhead rate is 180,000 dret labour hours. The variable overhead spending verlance for Augusti Troy Engines Ltd manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to produce and sell one type of carburetor to Troy Engines Ltd for a cost of $42 per unit. To evaluate this offer, Troy Engines Ltd has gathered the following information relating to its own cost of producing the carburetor internally 1. Direct materials cost $21 per unit. 2. Troy Engines pays its direct labour employees $20 per hour, each carburetor requires 30 minutes of labour time 3. Variable manufacturing overhead is allocated at 30% of direct labour cost. 4. Total fixed manufacturing cost amounts to S15 per unit, of which 60% is allocated common cost and the remaining 40% covers depreciation of special equipment and supervisory salaries. The special equipment has no resale value. Supervisory personnel will be transferred to a different department if the company decides to purchase the carburetor from the outside supplier 5. Yearly production of this type of carburetor is 15700 units. Required: 1-o. Assume that the company has no alternative use for the facilities that are now being used to produce the carburetors. Compute the total differential cost per unit for producing and buying the product