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UCW accounting college provides it's own housekeeping services. The college director would like to outsource this service and has found a company that will provide
UCW accounting college provides it's own housekeeping services. The college director would like to outsource this service and has found a company that will provide the service for $48 per hour. The following information has been collected about the cost per hour to the college for performing it's own housekeeping services. cost per hour of service: Cleaning supplies $4, Direct labour costs $30, Variable overhead $1, Total hours of housekeeping services per year 3,000., Total fixed overhead $50,000. Determine whether UCW accounting college should outsource housekeeping, assuming that 50%of fixed costs can be eliminated if the service is outsourced. Provide detailed calculations to support your
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