work Question 13 of 13 < > -/1 E The management of Shatner Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. The part, called CISCO, is a component of the company's finished product. The following information was collected from the accounting records and production data for the year ending December 31, 2020. 1.8,100 units of CISCO were produced in the Machining Department. 2. Variable manufacturing costs applicable to the production of each CISCO unit were: direct materials $4.65, direct labor $4.46, indirect labor $0.45, utilities $0.38. 3. Fixed manufacturing costs applicable to the production of CISCO were: Cost Item Depreciation Direct Allocated $2,000 $870 Property taxes Insurance 480 350 860 $3,340 630 $1,850 All variable manufacturing and direct fixed costs will be eliminated if CISCO is purchased. Allocated costs will not be eliminated if CISCO is purchased. So if CISCO is purchased, the fixed manufacturing costs allocated to CISCO will have to be absorbed by other production departments. e here to search