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need help with 9 and 11 Rosemary's Home Furnishings manufactures 18,850 components per year. The manufacturing cost of the components was determined to be as
need help with 9 and 11 Rosemary's Home Furnishings manufactures 18,850 components per year. The manufacturing cost of the components was determined to be as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total $172,000 350,000 101,000 230,000 $853,000 An outside supplier has offered to sell components to Rosemary's for $34. Assuming Rosemary's incurs the same tixed manufacturing overhead cost whether it makes or buys its components. What would be the effect on operating profits if Rosemary's chose to purchase components from the outside supplier? Which of the following cost estimation methods has the DISADVANTAGE of being very costly? Multiple Choice Engineering method Account analysis method Scattergrophonolysis Statistical cost estimation
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