QUESTION 6 Hojnik Inc produces part ABC used in several of its engine models. Monthly production costs for 1,090 units are as follows: Direct materials $46,000 Direct labour 10,500 Variable overhead costs 32,500 Fixed overhead costs 22.000 Total costs $111,000 It is estimated that 6% of the fixed overhead costs assigned to ABC will no longer be incurred if the company purchases ABC from the outside supplier. Hojnik Inc. has the option of purchasing the part from an outside supplier at $94.75 per unit. If the company accepts the offer from the outside supplier, the monthly avoidable costs (costs that will no longer be incurred) total $111,000 0 $112,320 $90,320 $89,000