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Piels Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units
Piels Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows Direct materials $87,000 126,000 58,000 136,000 $407.000 Direct labor Variable factory overhe ad Fixed factory overhead Total costs Of the fixed factory overhead costs, $55,000 is avoidable Assuming no other use of their facilities, the highest price that Piels should be willing to pay for 10,000 units of the part is $407,000 $326,000 $349,000 $271,000
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