Make or Buy Decision with Limited Capacity Standard costs and other data for two component parts used by Griffon Electronics are presented below: 13-24 Part B5 $ 8.00 4.70 2.00 14.70 8,000 Part A4 Direct material Direct labor100 Factory overhead Unit standard cost $5.40 Units needed per year .. Machine hours per unit Unit cost if purchased. $.00 $0.40 4.00 6,000 15.00 In past years, Griffon has manufactured all of its required components; however, in 20XI only 30,000 hours of otherwise idle mhetme can be devoted to the produc tion of components. Accordingly, some of the parts must be purchased from outside suppliers. In producing parts, factory overhead is applied at $1.00 per standard ma chine hour. Fixed capacity costs, which will not be affected by any make-buy decision, represent 60%of the applied overhead. The 30,000 hours of available machine time are to be utilized such that Griffon realizes maximum potential cost savings on Products A4 and B5. ic- Required (a) What are the relevant unit costs for making this decision? (b) H ow should machine time be allocated to the products? (AICPA adapted)