The Summer Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards (CMCB), an important part of the cellular modem. It reports the following cost information about the costs of making CMCBs in 2020 and the expected costs in 2021: (Click the icon to view the make-versus-buy information.) Read the requirements. (Click the icon to view the costs.) Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2021. Direct materials Direct manufacturing labor Variable batch manufacturing costs Fixed manufacturing costs Avoidable fixed manufacturing costs Unavoidable fixed manufacturing costs Total manufacturing costs Requirements Total Manufacturing Manufacturing Costs of CMCB Cost per Unit 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2021. 2. Suppose the capacity currently used to make CMCBs will become idle if Summer purchases CMCBs from Moonbeam. On the basis of financial considerations alone, should Summer make CMCBS or buy them from Moonbeam? Show your calculations. 3. Now suppose that if Summer purchases CMCBS from Moonbeam, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB38) to the Easy Corporation. Summer estimates the following incremental revenues and costs from CBSS: Total expected incremental future revenues Total expected incremental future costs $2,100,000 $2,275,000 On the basis of financial considerations alone, should Summer make CMCBS or buy them from Moonbeam? Show your calculations. Print Done Data table Current Costs in 2020 Expected Costs in 2021 Variable manufacturing costs Direct material cost per CMCB Direct manufacturing labor cost per CMCB S 170 S 25 165 29 Variable manufacturing cost per batch for setups, materials handling, and quality control 1,200 1,800 Fixed manufacturing cost - Fixed manufacturing overhead costs that can be avoided if CMCBS are not made 580,000 300,000 Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBs are not made 580,000 700,000 Print Done Clear all Check answer