Leland Manufacturing uses 10 units of Part Number KJ37 each month in the production of radar equipment. The unit cost to manufacture 1 unit of KJ37 is presented below. Direct materials Materials handling (20% of direct materials cost) Direct labor Manufacturing overhead (150% of direct labor) Total manufacturing cost $1,000 200 8,000 12,000 $21,200 Materials handling represents the direct variable costs of the Receiving Department that are applied to direct materials and purchased components on the basis of their cost. This is a separate charge in addition to manufacturing overhead. Leland's vendors, has offered to supply Part Number KJ37 at a unit price of $15,000 Assume that Leland Manufacturing does not wish to commit to a rental agreement but could use idle capacity to manufacture control, Leland's opportunity cost is annual manufacturing overhead budget is one-third variable and two-thirds fixed. Scott Supply, one of Leland's reliable that would contribute $52,000 per month. If Leland elects to manufacture KJ37 in order to maintain quality A. B. C. Some amount other than those given $4,000 S(20,000) D. $18,000