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! Required information. [The following information applies to the questions displayed below.] Redbud Company uses a certain part in its manufacturing process that it
! Required information. [The following information applies to the questions displayed below.] Redbud Company uses a certain part in its manufacturing process that it buys from an outside supplier for $36 per par plus another $5 for shipping and other purchasing-related costs. The company will need 18,000 of these parts in the n year and is considering making the part internally. After performing a capacity analysis, Redbud determined that it has sufficient unused capacity to manufacture the 18,000 parts but would need to hire a manager at an annual salary of $54,000 to oversee this production activity. Estimated production costs are determined to be as follows: Direct material Direct labor Variable overhead Fixed overhead (includes manager at $3 per unit) Total unit cost $ 23 10 5 B $ 46 Required: a. Identify the relevant costs to make this part internally. (You may select more than one answer. Single click the box with the
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