Window Help @E, 61%.0 Sat 826 PM a 0 14 Homework Help Save& Exit Submit from Kobec, Inc. Because the price keeps ent has asked for an estimate of the cost of manufacturing increasing and reached $68.00 per unit last year, CTR's managem the pump in CTR's facilities. CTR makes stampings and castings and has lttle experience with products requiring assembly The engineering, manufacturing, and accounting departments have prepared a report for management that includes the ollowing estimate for an assembly run of 10,000 pumps. Additional production employees pumps but no additional equipment, space, or supervision would be needed would be hired to manufacture the The report states that total costs for 10,000 units are estimated at $952000, or $95.70 per unit The current purchase price is $68.00 per unit, so the report recommends continued purchase of the product (outside purchases) Aasenbly 1abor Ranutacturing overhes 120, 000 00,000 50,000 Caneral and administeative overhead87.80 Assembly labor consists of hourly production workers Manufacturing overhead is applied to products on a direct-iabor-dollar basis Varisble-overhead costs vary closely with direct- labor dollars _a0.of direct-Labor dollar, 150 ot airect-labor dollare General and administrative overheed is applied at 10 percent of the total cost of matenial for components), assembly labo C Prev6of6 Next 083 5 0 return