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o points Question 1 Genent's Engine Company manufactures part TE456 used in several of its engine models. Monthly production costs for 1060 units are as
o points Question 1 Genent's Engine Company manufactures part TE456 used in several of its engine models. Monthly production costs for 1060 units are as follows: Direct materials $43,000 Direct laber 9500 Variable overhead costs 32,500 Fixed overhead costs 21.000 Totalcouts $106.000 It is estimated that 10% of the fixed overhead costs assigned to TE456 will no longer be incurred if the company purchases TE456 from the outside supplier. Genent's Engine Company has the option of purchasing the part from an outside supplier at $97.75 per unit. Genent's Engine Company accepts the offer from the outside supplier, the monthly avoidable costs (costs that will no longer be incurred) total $106,000 $108,100 585,000 587,100 Question 1 of 3
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