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Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 59,000 units of RX5 follows. Direct
Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 59,000 units of RX5 follows. Direct materials Direct labor Overhead Total costs per unit $ 5.00 9.00 10.00 $24.00 Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 59,000 units of RX5 for $19.00 per unit. Required: 1. Determine the total incremental cost of making 59,000 units of RX5. 2. Determine the total incremental cost of buying 59,000 units of RX5. 3. Should the company make or buy RX5? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the total incremental cost of making 59,000 units of RX5. Making the units Incremental cost of making RX5 Variable overhead costs Direct materials Direct labor Total incremental cost of making 59,000 units $ 0 Direct materials and direct labor are 100% variable. Overhead is 80% fixed of RX5 for $19.00 per unit. Required: 1. Determine the total incremental cost of making 59,000 units of RX5. 2. Determine the total incremental cost of buying 59,000 units of RX5. 3. Should the company make or buy RX5? Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Determine the total incremental cost of buying 59,000 units of RX5. Buying the units Incremental cost of buying RX5 Cost per unit to buy Total incremental cost of buying 59,000 units
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