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Exercise 8-8 (Part Level Submission) The Bramble Company manufactures 1,351 units of a part that could be purchased from an outside supplier for $14 each.
Exercise 8-8 (Part Level Submission) The Bramble Company manufactures 1,351 units of a part that could be purchased from an outside supplier for $14 each. Bramble costs follows: manufacture each part areas Direct materials $3 Direct labor 4 Variable manufacturing overhead 4 Fixed manufacturing overhead $20 Total All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no alternative uses (a-b) Your answer is correct. (a) Calculate relevant cost to make. Relevent cost to make $ per unit (b) Should Bramble continue to manufacture the part? Yes (c-d (c) Calculate net cost to buy if Bramble leases the manufacturing facilities to another company for $6,263 per year. Net cost to buy $ (d) Would your answer change if Bramble could lease the manufacturing facilities to another company for $6,263 per year
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