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Kingston Company, which needs 10,000 units of a certain part to be used in its production cycle, can make or buy the part. If Kingston
Kingston Company, which needs 10,000 units of a certain part to be used in its production cycle, can make or buy the part. If Kingston buys the part from Utica Company, Kingston could not use the released facilities in another manufacturing activity within the co ming year. 6 % e ed overhead applied will continue regardless of which decision option is chosen. The following per-unit cost information to make the part by Kingston is available Direct materials Direct labor Variable overhead Fixed overhead applied $ 39 156 78 98 $371 Cost to buy the part from Utica Company $ 87 In deciding whether to make or buy the part, Kingston's total relevant cost to make the part would be
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