Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 8,300 units, but its actual level of activity was 8,350 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses Fixed element per month $ 0 $ 0 0 40,000 27,100 $ 67,100 Variable element per unit $ 35.80 $ 6.40 12.10 2.10 4.00 $ 24.60 Actual results for May: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses $ 297,500 $ 52,870 $ 99,580 $ 51,500 $ 30,630 The direct labor in the planning budget for May would be closest to: Sardi Inc. is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 11,800 of the components each year. The unit product cost of the component according to the company's cost accounting system is given as follows: Direct materials $ 7.60 Direct labor 4.60 Variable manufacturing overhead 0.40 Fixed manufacturing overhead Unit product cost $15.00 Assume that direct labor is a variable cost of the fixed manufacturing overhead, 35% is avoidable if the component were bought from the outside supplier. In addition, making the component uses 1 minutes on the machine that is the company's current constraint. If the component were bought, time would be freed up for use on another product that requires 2 minutes on this machine and that has a contribution margin of $2.50 per unit. When deciding whether to make or buy the component, what cost of making the component should be compared to the price of buying the component? (Round your intermediate calculations to 2 decimal places.) Multiple Choice $15.44 per unit O O $14.69 per unit O $16.24 per unit $15.60 per unit