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Question 3 XX produces several models of clocks. XX has provided the following unit costs for its commercial clocks: Direct materials $100 Direct labor 140
Question 3 XX produces several models of clocks. XX has provided the following unit costs for its commercial clocks: Direct materials $100 Direct labor 140 Variable overhead Fixed overhead (40% avoidable) xx needs 1,200 clocks annually. An outside supplier has offered XX to produce clocks for $420 each. What would be the XX's total relevant cost of making the clocks - in considering make or buy decision? 80 150 $384,000 $ 456,000 Correct answer is not provided $564,000
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