Question
Wallaby Company manufactures a part for its production cycle. The costs per unit for 10,000 units of the part are as follows: Per Unit Direct
Wallaby Company manufactures a part for its production cycle. The costs per unit for 10,000 units of the part are as follows:
|
| Per Unit |
| Direct materials | $10.00 |
| Direct labor | 15.00 |
| Variable factory overhead | 3.00 |
| Fixed factory overhead | 2.00 |
| Total costs | $30.00 |
The fixed factory overhead costs are unavoidable. Assume no other use for the facilities. What is the highest price Wallaby Company should pay for the part from an outside supplier?
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Auditing And Assurance Services
Authors: Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay Thibodeau
9th International Edition
1266285997, 978-1266285998
