excel managerial accounting chapter 8

CDE Your Company makes 5600 units of a component part. At this level of activity, the cost per part rcise 8 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $4.00 $2.00 $3.00 $7.00 $16.00 An outside supplier has offered to sell the parts to Your Co. for $14 each. If Your Co. accepts this offer, it will be able to increase production of another product and earn an additional $8960 profit. Of the fixed manufacturing overhead, 70% is allocated and 30% direct. Complete the following table to determine whether you should make or buy the part. Buy $0 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Purchase price Opportunity cost Total cost What is the difference in cost? Should you make or buy the part? Make