Question
O Question 6 1 pts (Not a repeat question.) The Hanes company needs 10,000 units of a component to be used in production. Currently
O Question 6 1 pts (Not a repeat question.) The Hanes company needs 10,000 units of a component to be used in production. Currently Hanes makes this component, but is considering outsourcing it to the Simms Company, who has offered 10,000 units at $53 per unit. Based current production data, the cost of producing the component per unit is $57, which consists of direct materials of $6, direct labor of $24, variable overhead items of $12, and applied fixed overhead of $15. Assume that 60% of fixed overhead is primarily related to facilities and equipment depreciation; the facilities and equipment are used on other components that Hanes produces. Hanes has no alternative use for the space and equipment. The other 40% of the fixed overhead is attributable to the component under question. In deciding whether or not to outsource, Hanes relevant costs to make the component are? 51 42 40 57 48 48
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