outside supplier. The part, called CISCO, is a component of the company's finished product. The following information was collected from the accounting records and production data for the year ending December 31, 2022 1.8.000 units of CISCO were produced in the Machining Department. 2. Variable manufacturing costs applicable to the production of each CISCO unit were: direct materials $4.80, direct labor $4.30, indirect labor $0.43, utilities $0.40 3. Fixed manufacturing costs applicable to the production of CISCO were: Cast Item Direct Allocated Depreciation $2.100 $900 Property taxes 500 200 Insurance 900 600 $3.500 $1.700 All variable manufacturing and direct fed costs will be eliminated if CISCO is purchased. Allocated costs will not be eliminated if CISCO is purchased So CISCO is purchased the fed manufacturing costs allocated to CISCO will have to be absorbed by other production departments