The Norran Company needs 15,000 units of a certain part to use in its production cycle. If Norran buys the part from Waterloo Company instead of making it, Norran could not use the released facilities in another activity; thus, all of the fixed overhead applied will continue regardless of what decision is made. Accounting records provide the following data:

Cost to Norran to make the part:

Direct materials, $3

Direct labor, $12

Variable overhead, $13

Fixed overhead applied, $8

Cost to buy the part from the Waterloo Company, $27

40. In deciding whether to make or buy the part, Norran's total relevant costs to make the part are

A) $240,000.

B) $405,000.

C) $360,000.

D) $420,000.