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Boshar Plastic Factory incurred the following costs to produce 10.000 plastic chairs in 2018. Direct Materials RO 15,000 Direct Labor 25,000 Variable Manufacturing Overhead 5,000
Boshar Plastic Factory incurred the following costs to produce 10.000 plastic chairs in 2018. Direct Materials RO 15,000 Direct Labor 25,000 Variable Manufacturing Overhead 5,000 Fixed Manufacturing Overhead 60,000 Ibra Manufacturing has offered to supply the chairs for RO 7 per unit. An analysis of the overhead costs has identified that if the chairs are purchased, Boshar Plastic Factory would eliminate RO 20,000 of fixed costs. The total cost to buy the chairs is: Select one: a. 70,000 O b. 110,000 c. None of the answers are correct O d. 175,000 O e. 100,000
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