Chapters 10, 11,12,13O Holp Save & Exit Submit The SP Corporation makes 33,000 motors to be used in the production of its sewing machines. The average activity is: motor at this level of Direct materials Direct labor Variable manufacturing overhead $9.20 $8.20 $3.30 $4.25 Fixed manufacturing overhead An outslde supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to SP Corporation for this motor is $23.05. If SP Corporation decides not to make the motors, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. Direct labor ls a variable cost in this company. The annual financlal advantage (disadvantage) for the company as a result of making the motors rather than buying them from the outside supplier would be Multiple Choice $140,250 MAY 1