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I need help on 4. please! Make-or-Buy Decision. Alternatives, Relevant Costs Each year, Giada Company produces 21,000 units of a component part used in tablet
I need help on 4. please!
Make-or-Buy Decision. Alternatives, Relevant Costs Each year, Giada Company produces 21,000 units of a component part used in tablet computers, An outside supplier has offered to supply the part for $1.23. The unit cost is $0.22 0.32 Direct materials Direct labor Variable overhead Fibed overhead Total unit cost 0.1 2.55 $3.69 Required: 1. What are the alternatives for Glada Company? Make the part in house or buy the part externally 2. Assume that none of the fixed cost is avoidable. Ust the relevant cost(s) of internal production, Direct materials, direct labor and variable overhead List the relevant costs) of external purchast. Purchase price 3. Which alternative is more cost effective and by how much? Making the part in house by $1,800 4. What I 519,400 of foed overhead la rental of equipment used only in production of the component that can be avoided if the component is purchased? Which alternative is more cost effective and by how much? Check My Work Step by Step Solution
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