hent Question 5 of 5 0.89/3 7,600 Make Wisco Buy Wisco Increase (Decrease) Direct materials $ 36480 $ 36480 Direct labour 38000 38000 Indirect labour 3268 3268 Utilities 2432 2432 Foxed costs 3475 3475 Purchase price 80180 (80180) Freight costs 3192 Belving costs (3192) 1290 Total annual cos (1290) 83655 84662 S -1007 signment Question 5 of 5 0.89/3 The managernent of Wildhorse Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it an outside supplier. The part, called WISCO, is a component of the company's finished product. The following information was collected from the accounting records and production data for the year ending December 31, 2022 1 The machining department produced 7,600 units of WISCO during the year. 2. Variable manufacturing costs applicable to the production of each WISCO unit were direct materials $4.80, direct labour $ 5.00, indirect labour $0.43, and utilities 50.32 3. Fored manufacturing costs applicable to the production of WISCO were as follows: Cost Item Direct Allocated Total 52000 $ 900 Depreciation Property taxes $2.900 530 165 695 Insurance 945 590 1.535 $3.475 $1.655 $ 5.130 The company will eliminate all variable manufacturing and direct fixed costs if it purchases WISCO. Allocated costs will have to be absorbed by other production departments. So if WISCO is purchased the fixed manufacturing costs allocated to WISCO will have to be absorbed by other production departments, 4. The lowest quotation for 7,600 WISCO units from a supplier is $80,180, 5. WISCO units are purchased, freight and inspection costs would be $ 0.42 per unit, and the machining department would incur receiving costs totalling $ 1.290 per year