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PLEASE I NEED HELP: MY ANSWER IS WRONG. THANKS Climate Control, nc., manufactures a variety of heating and air-conditioning units. The company is currently manufacturing
PLEASE I NEED HELP: MY ANSWER IS WRONG.
THANKS
Climate Control, nc., manufactures a variety of heating and air-conditioning units. The company is currently manufacturing all of its own component parts. An outside supplier has offered to sell a thermostat to Climate-Control for $32 per unit. To evaluate this offer, Climate-Control, Inc., has gathered the following information relating to its own cost of producing the thermostat internally: 15,700 Per Units. Unit per year 9 $141,300 Direct materials Direct labor 11 172.700 3 47.100 Variable manufacturing overhead 6* 94.200 Fixed manufacturing overhead, traceable Fixed manufacturing overhead, common, but allocated 13 204,100 Total cost 42 $659,400 "40% supervisory salaries: 60% depreciation of special equipment (no resale value) Required 1a. Assuming that the company has no alternative use for the facilities now being used to produce the thermostat, compute the total cost of making and buying the parts. (Round your Fixed manufacturing overhead per unit rate to nearest dollar amount. Omit the sign in your response. Bury Make Total relevant cost (15,700 units) 39878 314000 1b. Should the outside supplier's offer be accepted? Reject O Accept
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