Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below: Supplies costs Alternative Q Alternative R $ 79,000 $ 79,000. Power costs $ 36,600 $ 35,600 Inspection costs $ 32,000 $ 35,600 Assembly costs $ 48,000 $ 48,000 Required: a. Which costs are relevant and which are not relevant in the choice between these two alternatives? b. What is the differential cost between the two alternatives? a. Supplies costs a. Power costs a. Inspection costs a. Assembly costs b. Differential cost Part U67 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the 15,500 units of the part that are needed every year. Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit 2.40 $ $ 3.40 $6.20 $ 6.70 $ 7.80 $ 4.90 An outside supplier has offered to make the part and sell it to the company for $26.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $21,500 of these allocated general overhead costs would be avoided. Required: a. Prepare a report that shows the financial impact of buying part U67 from the supplier rather than continuing to make it inside the company. b. Which alternative should the company choose? Complete this question by entering your answers in the tabs below. Required A Required B Prepare a report that shows the financial impact of buying part U67 from the supplier rather than continuing to make it inside the company. Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Outside purchase price Total cost Make Buy Part U67 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the 15,500 units of the part that are needed every year. Direct materials! Direct labor Variable overhead Supervisor's salary, Depreciation of special equipment Allocated general overhead Per Unit $ 2.40 $ 3.40 $ 6.20 $ 6.70 $ 7.80 $ 4.90 An outside supplier has offered to make the part and sell it to the company for $26.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $21,500 of these allocated general overhead costs would be avoided. Required: a. Prepare a report that shows the financial impact of buying part U67 from the supplier rather than continuing to make it inside the company. b. Which alternative should the company choose? Complete this question by entering your answers in the tabs below. Required A Required B Which alternative should the company choose? The total cost of the "make" alternative is by Therefore, the company should the part < Required A Required