Gottshall Inc. makes a range of products. The company's predetermined overhead rate is $19 per direct laborhour, which was calculated using the following budgeted data: Variable manufacturing overhead $225,666 Fixed manufacturing overhead $636,666 Direct labor-hours 45,666 Component PO is used in one of the company's products. The unit cost of the component according to the company's cost accounting system is determined as follows: Direct materials $ 21.66 Direct labor 46.86 Manufacturing overhead applied 32.36 Unit product cost $ 94.16 An outside supplier has offered to supply component PG for $78 each. The outside supplier is known for quality and reliability. Assume that direct labor is a variable cost. variable manufacturing overhead is really driven by direct laborhours, and total fixed manufacturing overhead would not be affected by this decision. Gottshall chronically has idle capacity. Required: Is the offer from the outside supplier financially attractive