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Homework: HW - Chapter 25 Question 6, 825-6 (similar to) HW Score: 34.8%, 4.18 of 12 points O Points: 0 of 1 P1of3 Save Suppose Fine Cuisine restaurant is considering whether to (1) bake bread for to restaurant in-house or (2) buy the tread from a local bakery. The chet estimates that varatie costs of making each loaf include 10.56 of ingredients 5023 of variable overhead (electricity to run the oven), and $0.76 of direct labor for kneading and forming the loaves. Alocating fixed overhead (depreciation on the kitchen spipment and buildings based on dred labor Fine Cuisine assigns $1.04 of fixed overhead per loat. None of the feed costs are avoidable. The local bakery would charge $1.34 per loa Read the requirements Requirements 1. What is the unit cost of maung the breas Complete the following outsourcing decision analysis to determine Fine Cuisine's unit cost of making the bread Fine Cuisine Outaourcing Decision Requirements Direct material Direct labor Variable overhead 1. What is the full product ust cost of making the bread house? Variable cost per unit 2. Should Fine Cuisine bake the bread in-house or buy from the loodsakery? Whyt Plus: Fixed overhead per unit 1. in to the ancial analysis, what else should Fine Cuere consider when making this decision? Cost per unit Print Done HW Score: 43.14%, 5.18 of 12 points Question 6, S25-6 (similar to) Part 1 of 3 Homework: HW - Chapter 25 O Points: 0 of Save 1 Suppose Fine Cuisine restaurant is considering whether to (1) bake bread for its restaurant in-house or (2) buy the bread from a local bakery. The chef estimates that variable costs of making each loaf include $0.56 of ingredients, $0.23 of variable overhead (electricity to run the oven), and $0.76 of direct labor for kneading and forming the loaves. Allocating fixed overhead (depreciation on the kitchen equipment and building) based on direct labor, Fine Cuisine assigns $1.04 of fixed overhead per loaf. None of the fixed costs are avoidable. The local bakery would charge $1.84 per loaf. Read the requirements. *** Requirements 1. What is the unit cost of making the bread in-house? Complete the following outsourcing decision analysis to determine Fine Cuisine's unit cost of making the bread. Fine Cuisine Outsourcing Decision Direct material Direct labor Variable overhead ||| Variable cost per unit Plus: Fixed overhead per unit 1. What is the full product unit cost of making the bread in-house? 2. Should Fine Cuisine bake the bread in-house or buy from the local bakery? Why? 3. In addition to the financial analysis, what else should Fine Cuisine consider when making this decision
