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Part 167 is used in one of Broce Corporations products. The company's Accounting Department reports the following costs of producing the 14,800 units of the
Part 167 is used in one of Broce Corporations products. The company's Accounting Department reports the following costs of producing the 14,800 units of the part that are needed every year Direct Materials Direct labor Variable overhe Supervivor's salary Depreciation of special pent Alte general head Per that $1. $2.70 $5.50 $6.00 $7. $ 4.20 An outside supplier has offered to make the part and sell it to the company for $200 esch If this offer is accepted the supervisor's Salary and all of the variable costs, including direct labor can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The located general overhead represents fixed costs of the entire company the outside suppliers offer were accepted.only $20.800 of these allocated general overhead costs would be avoided Required 8. Prepare a report that shows e francis meat of buying part U67 from the suppler rather than cortinuing to make inside the b. Which wunave should the company choose? Complete this restion by entering your answers in the tabs below. Which seat should the company cho then KA
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