Paragraph Styles Problem #7 Darnell Inc. budgeted 5,000 widgets for production during 2004. Fixed factory overhead is allocated using ABC. The following estimated costs were provided: Direct material ($80/unit) $400,000 Direct labor ($22/hr. * 2 hrs./unit) 220,000 Variable manufacturing overhead 40,000 ($8/unit) Fixed factory overhead costs 269,000 ($53.80/unit) Total $929.000 Cost per unit = $185.80 A. Darnell received an order for 400 units from a new customer in a country in which Darnell has never done business. This customer would like to spend $160 per widget. Darnell has capacity to produce 5,500 units. Should Darnell accept the order? Support your work with an incremental analysis. I B. Darnell received an offer from another company to manufacture the same quality widgets for them at $140. Should Darnell let someone else manufacture all 5,000 widgets and focus on only distribution? Support your work with an incremental analysis C. While evaluating the offer to outsource, Darnell realized it could rent its manufacturing space for $ 50,000. Now, should Darnell outsource the manufacture of the widgets? Support your work with an incremental analysis