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SHOW ALL WORK! paty produces part that is usea in the manuractuie or oe costs associated with the production of 5,000 units of this part

image text in transcribedSHOW ALL WORK!
paty produces part that is usea in the manuractuie or oe costs associated with the production of 5,000 units of this part are as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Total costs $108,000 156,000 70,000 168,000 $502,000 Of the fixed factory overhead costs, $72,000 are avoidable. Assuming there is no other use for the facilities. What is the highest price Davidson Company should be willing to pay for 5,000 units of the part? A) $334,000 B) $502,000 C) $264,000 D) $406,000 11) Benton Company manufactures a part for its production cycle. The costs per unit for 38,000 units of the part are as follows: Per Unit $3.00 5.00 3.00 4.00 $15.00 Direct materials Direct labor Variable factory overhead Fixed factory overhead Total costs unavoidable. Assume no other use for the facilities. What is the The fixed factory overhead costs are highest price Benton Company should pay for the part from an outside supplier? A) $12 B) $8 C) $15 D) $11

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