Question
bradford Manufacturing produces 1,000 units of a necessary component with the following costs: Direct Materials $48,000 Direct Labor 32,000 Variable Overhead 8,000 Fixed Overhead 14,000
bradford Manufacturing produces 1,000 units of a necessary component with the following costs:
Direct Materials $48,000
Direct Labor 32,000
Variable Overhead 8,000
Fixed Overhead 14,000
Bradford could avoid $6,000 in fixed overhead costs if it acquires the components externally. What is the maximum external price that Bradofrd would accept to acquire the 1,000 units externally?
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The Internal Auditing Handbook
Authors: K. H. Spencer Pickett
3rd Edition
0470518715, 978-0470518717
