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Exercise 8-8 The Swirty Company manufactures 1.420 units of a part that could be purchased from an outside supplier for $12 each. Swifty's costs to
Exercise 8-8 The Swirty Company manufactures 1.420 units of a part that could be purchased from an outside supplier for $12 each. Swifty's costs to manufacture each part are as follows: $2 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total 3 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) Calculate relevant cost to make. Relevent cost to make $ per unit (b) Should Swifty continue to manufacture the part? (c) Calculate net cost to buy if Swifty leases the manufacturing facilities to another company for $6,550 per year. Net cost to buy $ (d) Would your answer change if Swifty could lease the manufacturing facilities to another company for $6,550 per year
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