Hi- Can I have assistance on the following:

Futura Company purchases the 73,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $10.10 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $11.10 as shown below:

Per Unit Total Direct materials $ 4.00 Direct labor 3.00 Supervision 1.90 $138,700 Depreciation 1.20 $ 87,600 Variable manufacturing overhead 0.60 Rent 0.40 $ 29,200 Total product cost $11.10 '