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please make sure the numbers are right. Masse Corporation uses part G18 in one of its products. The company's Accounting Department reports the following costs
please make sure the numbers are right.
Masse Corporation uses part G18 in one of its products. The company's Accounting Department reports the following costs of producing the 14,700 units of the part that are needed every year Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general $1.60 $2.60 $5.40 $5.90 $700 $4.10 overhead An outside supplier has offered to make the part and sell it to the company for $20.00 each. If this offer is accepted, the supervisors salary and all of the variable costs including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside suppliers offer were accepted, only $20,700 of these allocated general overhead costs would be avoided. In addition, the space used to produce part G18 could be used to make more of one of the company's other products, generating an additional segment margin of $21,000 per year for that product Required: Step by Step Solution
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