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Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 64,000 units of RX5 follows. Haver
Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 64,000 units of RX5 follows.
Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 64.000 units of RX5 follows. Direct materials Direct labor Overhead Total costs per unit $ 4.00 8.ee 9.89 $21.ee Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 64.000 units of RX5 for $19.00 per unit. Required: 1. Determine the total incremental cost of making 64.000 units of RX5. 2. Determine the total incremental cost of buying 54.000 units of RX5. 3. Should the company make or buy RX5? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the total incremental cost of making 54,000 units of RX5. Incremental cost of making RX5 Direct materials Direct labor Variable overhead costs Total incremental cost of making 84.000 units Making the units $ 250.000 512.000 172.800 S 940.800 Overhead Total costs per unit 9.00 $21.00 Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 64.000 units of RX5 for $19.00 per unit. Required: 1. Determine the total incremental cost of making 64.000 units of RX5. 2. Determine the total incremental cost of buying 64.000 units of RX5. 3. Should the company make or buy RX5? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the total incremental cost of buying 54,000 units of RX5. Incremental cost of buying RX5 Variable overhead costs Total incremental cost of buying 64,000 units Buying the units 5 172.800.00 $ 940.800Step by Step Solution
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