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is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of Part U67 producing the 15,500 units of the

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is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of Part U67 producing the 15,500 units of the part that are needed every year. Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit 2.40 3.40 6.20 6.70 7.80 4.90 An outside supplier has offered to make the part and sell it to the company for $26.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $21,500 of these allocated general overhead costs would be avoided. the part was Required a. Prepare a report that shows the financial impact of buying part U67 from the supplier rather than continuing to make it inside the company b. Which alternative should the company choose? Complete this auestion bv enterina vour answers in the tabs below. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a report that shows the financial impact of buying part U67 from the supplier rather than co the company. Make Buy Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Outside purchase price Total cost Required A Required B Help Save & Exit company b. Which alternative should the company choose? Complete this question by entering your answers in the tabs below. Required A Required B Which alternative should the company choose? The total cost of the "make" alternative is Therefore, the company should Required A Re K Prey 6 of 12 Next

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