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need work asap AWM Corp. currently produces rocking Chairs in-house and incurs the following revenues and costs for the product lines Selling price... .. .........$200.00
need work asap AWM Corp. currently produces rocking Chairs in-house and incurs the following revenues and costs for the product lines Selling price... .. .........$200.00 Direct material. .... ...50.00 Direct labor 75.00 Variable manufacturing overhead 8.00 Fored manufacturing overhead........... 6.00 Total Product Cost ... $139.00 Marketing costs................. .....$1,000 of the foxed manufacturing overhead, 1/3 relates to depreciation, 1/3 relates to general company overhead and 1/3 relates to supervisors' salaries. The equipment used to manufacture rocking chairs is specialized and has no resale value. Production for the previous year based on sales requires 10.000 chairs. One of AWM's suppliers has offered to sell them the same rocking Chairs for $130.00 each Required: a. What are the relevant costs of both making and buying rocking chairs? b. Should AWM accept the offer and buy chairs from the supplier
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