variable cverhead (electricity to run the aven) and S0.78 of diect labor for kneading and forming the losaves. Allocating fixed overhead (depreciation on the kitchen eauipment and building based on direct labr Bourbon House assigns $0.95 of the fixed costs are avoidable. The local bakery would charge $1.72 per loaf. fixed overhead per loaf. None o Read the requirements Requirements 1. What is the unit cost of making the bread in-house? Complete the following outsourcing decision analysis to determine Bourbon House's unit cost of making the bread. Bourbon House Outsourcing Decision Direct material Direct labor Variable overhead Variable cost per unit Plus: Fixed oerhead per unit Cost per unit Requirement 2. Should Bourbon House bake the bread in-house or buy from the local bakery? Why? Decision: since the of making each loaf is the cost of outsourcing each loaf. Requirement 3. In addition to the financial analysis, what else should Bourbon House consider when making this decision? Requirement 3. In addition to the financial analysis, what else should Bourbon House consider when making this decision? Bourbon House should consider the following qualitative factors before making a final decision: O A. Will the local bakery meet their delivery time requirements? O B. How does the quality and freshness of the local bakery bread compare to Bourbon House bread? O c. Both A and B D. None of the above