Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead. Total manufacturing costs Cost per pair ($220,000/20,000) $ 20,000 80,000 40,000 80,000 S 220,000 S 11.00 PrintDone x-Parenca manufacturessnowbands Its coat at making 2nD incings is aa tollows Cick the icon to wew the costs. ) Read the eouremet Requirement 1. X-Pariancos accountants prodict that purchasing the bindings from the outside supplcr wil cnablc tha company to avoid $2 GCO of foued avchoad. Propare an analysis to show whethar X-Penenc should make or buy the bindings. Enter a for any zero balancos. Round any per unt amounts to the nearest cent and your final answers to the nearest whole dolar. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy ) ncremental Anvelyrsig Muke Buy (Outsource Bindings Bindings Pha Fized Costs Total cost of 20,000 bindirgs Dac sion Requirement 2. The fac liies freed by purthasing bindirgs from the outside supplier can be used to manufacture ancther product that will contribute $2,700 to profia Total fuxed costs will be the same as if X-Perience had produced the bindings. Show which altermative makes the best use cfX-Perience'ss faciities: a) maks bindings, (buy bindinge and leave faclties ide, or (c) buy bincings and make another procuct.(mer for ay 2er0 baancee Rcund ay per unit amounts to the nearest cent and your Inal arawers 1o the neareet whole dolar) Buuy [Outsourca) Hindings Incremental Anelyais (a) Make Dinding (c) Make Decision Facilities Ide Anothcer Product nabio Costs Total coat of 20,000 bindings Less: Profit from another product Net cost Dccision