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 loaf include $0.56 of ingredients, $0.18 of variable overhead (electricity to run the oven), and $0.75 of direct labor for kneading and forming the loaves. Allocating fixed overhead (depreciation on the kitchen equipment and building) based on direct labor, Seafood House assigns $1.02 of fixed overhead per loaf. None of the fixed costs are avoidable. The local bakery would charge $1.82 per loaf. Read the requirements. Requirements 1. What is the unit cost of making the bread in-house? Complete the following outsourcing decision analysis to determine Seafood House's unit cost of making the bread. Direct material Direct labor Variable overhead Seafood House Outsourcing Decision Variable cost per unit Plus: Fixed overhead per unit Cost per unit Requirements 1. What is the full product unit cost of making the bread in-house? 2. Should Seafood House bake the bread in-house or buy from the local bakery? Why? 3. In addition to the financial analysis, what else should Seafood House consider when making this decision? Print Done - X