Grace MoCann recently started a job as an administrattve assistant in the cost accounting department of Nashville Manufacturing. Now to the area of cost accounting, Grace in puzzled by the fact that one of Nashville's manufactured products, SR$670,$ has a different cost depending on who asks for it Whan the marketina denartment manuestad tha const of SRA$70$ in arder in dafacmine $.$ nricina for the new catalog, Graco was told to report one amount, but when a request came in the very next of different cost. Grace runs a report using Nashville's cost accounting system, which produces the follor

$($Click the icon to view the cost elements.$)$

Data table

Read the mequirements.

Requirement $1.$ Explain to Grace why the cost given to the marketing and financial reporting departm

Financial reporting is guided by when determining the cost of a product

internal decisions, for the new catalog, managers at Nashville will include

Requirement $2.$ Calculate the cost of one unit of SR$670$ to determine $($a$)$ the selling price of SR$670,($f$)$

or to purchase it from an outside source. $($If a box is not used in the table, leave the box empty; do not

Direct materials

Direct manufacturing labor

Variable manufacturing overhead

Allocated fixed manufacturing overhead

Research and development costs specific to SR$670$

Marketing costs

Sales commissions

Allocated administrative costs of corporate headguarters

Customer service costs

Requirement

Explain to Grace why the cost given to the marketing and financial reporting departments would be different.

Calculate the cost of one unit of SR$670$ to determine the following:

a$.$ The selling price of SR$670$

b$.$ The cost of inventory for financial reporting

c$.$ Whether to continue manufacturing SR$670$ or to purchase it from an outside source $($Assume that SR$670$ is used as a component in one of