ue susis of direct labour hours at a rate of $10 per hour ** Applied on the basis of machine hours at a rate of $30 per machine hour nutacturer can add labour as needed but has limited machine capacity, which model should be manufactured with the excess production capacity? a. Junior b. Teen c. International d. Pro EXERCISES 4.21 Make or Buy, Qualitative Factors Yoklic Corporation currently manufactures a subassembly for its main product. LO 1, LO 3 The costs per unit are as follows: Direct materials Direct labour Variable overhead Fixed overhead Total $4.00 30.00 15.00 25.00 $74.00 Regina Corp. has contacted Yoklic with an offer to sell it 5,000 subassemblies for $55.00 each. QUIRED A. Should Yoklic make or buy the subassemblies? Create a schedule that shows the total quantitative differences between the two alternatives. B. The accountant decides to investigate the fixed costs to see whether any incremental changes will occur if the subassembly is no longer manufactured. The accountant believes that Yoklic will eliminate $50,000 of fixed overhead if it accepts the proposal. Does this new information change the decision? Show your calculations C. What qualitative factors are important for accountants and managers to consider for Yoklic's make or buy decision? .22 Constrained Resource, Qualitative Factors Johnson and Sons Inc. produces organic cranberry juice from ne of our cold weather