CCT 2302.H30C Principles of Managerial Acct 520 TTh 10 to 11:5 Josue Vasquez & 05/14/20 2:03 PM omework: Ch 25 Homework Save core: 0 of 30 pts 2 of 3 (1 complete) HW Score: 26.25%, 26.25 of 100 p 25-6 (similar to) Question Help Suppose Country Cafe restaurant is considering whether to (1) bake bread for its restaurant in-house or (2) buy the bread from a local bakery. The chef estimates that variable costs of making each loaf include $0.58 of ingredients, $0.27 of variable overhead (electricity to run the oven), and $0.71 of direct labor for kneading and forming the loaves. Allocating fixed overhead (depreciation on the kitchen equipment and building) based on direct labor, Country Cafe assigns $0.96 of fixed overhead per loaf. None of the fixed costs are avoidable. The ocal bakery would charge $1.82 per loaf Read the requirements Requirements 1. What is the unit cost of making the bread in-house? Complete the following outsourcing decision analysis to determine Country Cafe's unit cost of making the bread, Country Cafe Outsourcing Decision Requirements Direct material Direct labor Variable overhead Variable cost per unit Plus: Fixed overhead per unit 1. What is the full product unit cost of making the bread in-house? 2. Should Country Cafe bake the bread in-house or buy from the local bakery? Why? 3. In addition to the financial analysis, what else should Country Cafe consider when making this decision? Cost per unit Print Dono Enter any number in the odit fields and then click Check Answer 2 parts remaining Clear All Check