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Problem 2 (3 points) Quest Company produces a part that has the following costs per unit Direct material Direct labor Variable overhead Fixed overhead Total

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Problem 2 (3 points) Quest Company produces a part that has the following costs per unit Direct material Direct labor Variable overhead Fixed overhead Total s 8 $17 Zest Corporat tion can provide the part to Quest for $19 per unit. Quest Company has determined that 60 percent of its fixed overhead would continue if it purchased the part Quest no longer produces the part, it can rent that portion of the plant facilities However, if for $60,000 per year. Quest Company currently produces 10,000 parts per year A. Determine the maximum amount per unit Quest Company could pay an outside supplier. B. Indicate if the company should make or buy the component and the total dollar difference in favor of that alternative

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