Suppose Seafood House restaurant is considering whether to (1) bake bread for its restaurant in-house or (2) buy the bread from a local bakery. The chef estimates that variable costs of making each bat include $0.40 of ingredients 0.28 of vanable overhead (electricity to run the oven), and $0.71 of direct labor for kneading and forming the loaves Alocating fixed overhead (depreciation on the kitchen equipment and buildingt based on direct labor Seafood House assigns $1.05 f fed overheart per loat. None of the fand costs are avoidable. The local bakery would charge $1.82 pro Read the mets Seafood House Outsourcing Decision Direct material Direct labor V Variable cost per un Plus Fixed overhead per unit Requirement 2 hod Seafood House bake the bread house or buy from the local bakery? Why? Deoson Requirem Seaton OP W OC A the the cost of oscuring each bat ppose Seafood House restaurant is considering whether to (1) bake bread for its restaurant in-house or (2) buy the bread from a local Bakary 18 riable overhead (electricity to run the oven), and $0.71 of direct labor for kneading and forming the loaves. Allocating fixed overhead (depreciation on the kitchen equipment and building) based om wed overhead per loaf. None of the fixed costs are avoidable. The local bakery would charge $1.82 per loaf. Read the requirements Seafood House Outsourcing Decision Direct material Direct labor Variable overhead Variable cost per unit Plus: Fixed overhead per unit Cost per unit Requirement 2. Should Seafood House bake the bread in-house or buy from the local bakery? Why? Decision since the of making each loaf is ng this decision? the cost of outsourcing each loaf Requirement 3. In addition to the financial analysis, what else should Seafood He Seafood House should consider the following qualitative factors before making at A. How does the quality and freshness of the local bakery bread compare to OB. Will the local bakery meet their delivery time requirements? OC. Both A and B COD. None of the above Fixed cost full cost variable cost Time Rema