Question
The Riverbed Company manufactures 1,046 units of a part that could be purchased from an outside supplier for $14 each. Riverbed's costs to manufacture each
The Riverbed Company manufactures 1,046 units of a part that could be purchased from an outside supplier for $14 each. Riverbed's costs to manufacture each part are as follows: $2 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total verhead 4 $17 Rectangular Snip 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. per unit Relevent cost to make $ (b) Should Riverbed continue to manufacture the part?
The Riverbed Company manufactures 1,046 units of a part that could be purchased from an outside supplier for $14 each. Riverbed's costs to manufacture each part are as follows: $2 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total verhead 4 $17 Rectangular Snip 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. per unit Relevent cost to make $ (b) Should Riverbed continue to manufacture the partStep by Step Solution
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