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Product costs directly traceable to balls: Direct labour Variable manufacturing overhead Fixed manufacturing overhead General allocated overhead 13.00 1.20 0.15 $300,000 120,000 15,000 60,000 48,000

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Product costs directly traceable to balls: Direct labour Variable manufacturing overhead Fixed manufacturing overhead General allocated overhead 13.00 1.20 0.15 $300,000 120,000 15,000 60,000 48,000 $543,000 The full cost of one pack of golf balls is $5.43. GI has received an offer from an outsic at a price of $5.85 per pack of four golf balls. The cost accounting department has pr The direct fixed manufacturing overhead is the cost of leasing the machine that sta maximum of 500,000 balls per year. If the balls are bought, the machine will no long No other costs will be affected. quired: repare an analysis showing whether GI would be better off making or buying the ba 0,000 golf balls). (Round "Per Unit" answers to 2 decimal places.) nase Per Unit 100,000 packs Make Buy materials labour manufacturing overhead manufacturing overhead Prev 1 of 15 E hp

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