Data table Direct materials Direct labor $ 17,500 2,600 Variable overhead 2,050 6,900 Fixed overhead $ 29,050 Total manufacturing costs for 2,100 bindings Print Done - Winter Sports manufactures snowboards. Its cost of making 2,100 bindings is as follows: (Click the icon to view the costs.) Suppose Lewis will sell bindings to Winter Sports for $12 each. Winter Sports would pay $3 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.60 per binding Read the requirements Requirement 1. Winter Sports' accountants predict that purchasing the bindings from Lewis will enable the company to avoid $2,600 of fixed overhead. Prepare an analysis to show whether Winter Sports should make or buy the bindings. (Only enter the net relevant costs. For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the bindings in-house.) Variable costs: Binding costs Direct materials Direct labor Make Outsource Bindings Bindings Difference (Make-Outsource) Variable overhead Fixed costs Purchase price from Lewis Transportation Logo Total differential cost of 2,100 bindings Should Winter Sports make or buy the bindings? Decision Requirement 2. The facilities freed by purchasing bindings from Lewis can be used to manufacture another product that will contribute $2,800 to profit. Total fixed costs will be the same as if Requirement 2. The facilities freed by purchasing bindings from Lewis can be used to manufacture another product that will contribute $2,800 to profit. Total fixed costs will be the same as if Winter Sports had produced the bindings. Show which alternative makes the best use of Winter Sports' facilities. (Only enter the net relevant costs. Enter all costs as positive values. Use a minus sign or parentheses for decreases to net costs.) Outsource Bindings Binding costs Make Bindings Facilities Idle Variable Costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Lewis Transportation Logo Expected profit from new producti Expected net cost of obtaining 2,100 bindings Which alternative makes the best use of Winter Sports' facilities? Decision Make New Product