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solve + Essex Company manufactures part 4A that is used in one of its products. The unit product cost of this part is: Direct materials
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+ Essex Company manufactures part 4A that is used in one of its products. The unit product cost of this part is: Direct materials $ 9, Direct labor 5, Variable overhead 1 Depreciation of special equip. 3, Supervisor s' salary 2, General factory overhead 10, Unit product cost $ 30. The special equipment used to manufacture part 4A has no resale value. The total amount of general factory overhead, which is allocated on the basis of direct labor hours, would be unaffected by this decision. The $30 unit product cost is based on 20,000 parts produced each year. An outside supplier has offered to provide the 20,000 parts at a cost of $16 per part. Should we accept ppt the supplier's offer? show all the computation Step by Step Solution
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