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The Outland Company manufactures 5,000 units of a part that could be purchased from an outside supplier for $16 each. Outland's costs to manufacture each
The Outland Company manufactures 5,000 units of a part that could be purchased from an outside supplier for $16 each. Outland's costs to manufacture each part are as follows: $4 3 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total 6 10 $23 All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no alternative uses. (a-b) (a) Calculate relevant cost to make. Relevent cost to make $ per unit (b) Should Outland continue to manufacture the part
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