Exercise 3 Your Company makes 2000 units of a component part. At this level of activity, the cost per part is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $3.00 $4.00 $2.00 $6.00 $15.00 An outside supplier has offered to sell the parts to Your Co. for $12 each. If Your Co. accepts this offer, it will be able to increase production of another product and earn an additional $6000 profit. Of the fixed manufacturing overhead, 60% is allocated and 40% direct. Complete the following table to determine whether you should make or buy the part. Make Buy Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Purchase price Opportunity cost Total cost |x x X X | X X XX XX IXX |x x X What is the difference in cost? should not make an hutbe nach