Make or Buy Decision Standard cost and other data for two parts-components used by Griffon Electronics Company appear below: Part A4 Part B5 Direct Material $0.40 $8.00 Direct Labor 1.00 4.70 Factory Overhead 4.00 2.00 Total Unit Standard Cost $5.40 $14.70 Units required per year 6,000 8,000 Machine hours per unit 4 2 Unit cost if purchased $5.00 $15.00 In past years Griffon has manufactured all its requirements of A4 and B5. However, during the coming year the firm will have only 30,000 hours of machine time available for producing components. Accordingly, some of them must be purchased from outside suppliers. In producing parts, the firm applies factory overhead at $1 per machine hour. Fixed manufacturing costs, which are unaffected by the volume of machine hours, are 60 percent of $1. Required: 1. Determine the costs of A4 and B5 that are relevant to the make or buy decision. 2. Determine the number of units of each component that Griffon should make during the coming year.