kercise 3 Your Company makes 7000 units of a component part. At this level of activity, the cost per part is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $3.00 $4.00 $2.00 $6.00 $15.00 An outside supplier has offered to sell the parts to Your Co. for $12 each. If Your Co. accepts this offer, it will be able to increase production of another product and earn an additional $21000 profit. Of the fixed manufacturing overhead, 60% is allocated and 40% direct. Complete the following table to determine whether you should make or buy the part. Make $21,000 Buy $0 $0 $0 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Purchase price Opportunity cost Total cost What is the difference in cost? Should you make or buy the part? X X XX XX XX $0 Buy