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Dani's Doohickeys can buy widgets from The Widget Company for $10 apiece or make them in-house. Dani alread manufacturing costs are $10,000. Here is how

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Dani's Doohickeys can buy widgets from The Widget Company for $10 apiece or make them in-house. Dani alread manufacturing costs are $10,000. Here is how Dani expects her costs to look with 1,000 widgets being built in-house: as a factory for making thingamajigs and current fixe Hourly rate paid to workers in the widget manufacturing department $20.00 ourly rate paid to the widget manufacturing department supervisor $32.00 Man hours per widget (4x supervisor hours) 0.25 hr it materials per widget in kilograms 0.20 kg per kilogram of direct materials $4.00 Hourly rate for utilities costs (allocated based on man hours) $1.25 Fixed manufacturing overhead $11,000

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