Mighty Safe Fire Alarm is currently buying 50,000 motherboard from MotherBoard, Inc. at a price of $65 per board. Mighty Safe is considering making its own boards. The costs to make the board are as follows: Direct Materials $32 per unit, Direct labor $10 per unit, Variable Factory Overhead $16.00, Fixed Costs for the plant would increase by $75,000. Which option should be selected and why? a. Buy - $75,000 more in profits b. Make - $275,000 increase in profits c. Buy - $275,000 more in profits d. Make - $350,000 increase in profits

Abbeville Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 80 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: SHOW WORK!! Standard wage per hr. $15.00 Standard labor time per faucet 30 min. Standard number of lbs. of brass per faucet 2 lbs. Standard price per lb. of brass $2.40 Actual price per Ib. of brass $2.60 Actual lbs. of brass used during the week 11,350 lbs. Number of faucets produced during the week 4,700 Actual wage per hr. $16.50 Actual hours for the week (80 employees x 36 hours) 2,880 A. What is the standard cost per unit for direct materials? B. What is the standard cost per unit for direct labor? C. What is the Direct Materials Price Variance? Favorable or unfavorable (Circle one) D. What is the Direct Materials Quantity Variance? Favorable or unfavorable (Circle one) E. What is the Direct Labor Rate Variance? Favorable or unfavorable (Circle one) F. What is the direct Labor Time Variance? Favorable or unfavorable (Circle one)