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Coreect the wrong answers please Han Products manufactures 29,000 units of part S-6 each year for use on its production line. At this level of
Coreect the wrong answers please
Han Products manufactures 29,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials $ 5.60 Direct labor 7.00 Variable manufacturing overhead 2.70 Fixed manufacturing overhead 12.00 Total cost per part $ 27.30 An outside supplier has offered to sell 29,000 units of part S-6 each year to Han Products for $45.00 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $756,300. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier. Required: a. Calculate the per unit and total relevant cost for buying and making the product? (Round your answer to 2 decimal places.) b. How much profits will increase or decrease if the outside suppliers offer is accepted? Han Products manufactures 29,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials $ 5.60 Direct labor 7.00 Variable manufacturing overhead 2.70 Fixed manufacturing overhead 12.00 Total cost per part $ 27.30 An outside supplier has offered to sell 29,000 units of part S-6 each year to Han Products for $45.00 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $756,300. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier. Required: a. Calculate the per unit and total relevant cost for buying and making the product? (Round your answer to 2 decimal places.) b. How much profits will increase or decrease if the outside suppliers offer is acceptedStep by Step Solution
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