please include as much detaul as possibkr

LAB 9: Chapter 12& Chapter 10 Chapter 12: RELEVANT COSTS FOR DECISION MAKING \& CHAPTER 10 - STANDARD COSTS AND OVERHEAD ANALYSIS PAST EXAM QUESTION \#1: After completing a recent review of the product portfolio at Simran Company, your boss has asked for your assistance in deciding whether to continue manufacturing a part or to buy it from an outside supplier. The part, which is named Navtron, is an essential component used in the production of one of the company's major products. You have gleaned the following data as being typical of the company's operations: - The annual requirement for Navtrons is 5,000 units. - The lowest price quoted from a supplier was $8 per unit. - Navtrons are manufactured in the machinery department. If Navtrons are purchased from an outside supplier, certain machinery will be sold. You can assume that the net book value of the machinery is a good guide as to its open market value. - Following are the total costs of the machinery department during a typical year when 5,000 Navtrons are made: - The machinery department costs that relate to the manufacture of Navtrons are: direct materials, $17,500; direct labour, $28,000; indirect labour, $6,000; power, $300; other $500. - The sale of the equipment used for Navtrons would eliminate the following costs from the machinery department: depreciation, $2,000; property taxes and insurance, $1,000. - The following additional machinery department costs would be incurred if Navtrons were purchased from an outside supplier: freight $0.50 per unit; and, indirect labour for receiving, materials handling. and inspection $5,000. The cost of the purchased Navtrons would be considered a machinery department cost. Required a) Prepare a schedule comparing the total costs of the machinery department (1) when Navtrons are made, and (2) when Navtrons are bought from an outsider supplier