X Company currently buys a part from a supplier for $13.29 per unit but is considering making the part itself next year. This year, they purchased 3,200 units of this part; next year, they will need 3,500 units. Estimated costs to make the part next year are:

Of the estimated fixed overhead, $6,899 are common costs that would be allocated to the part; the remainder would be additional fixed overhead costs. X Company currently receives $2,800 a year by renting unused factory space, but it will have to use this space to make the part.

		Per-Unit	Total
Direct materials		$2.76	$8,832
Direct labor		4.41	14,112
Variable overhead		3.20	10,240
Fixed overhead		4.90	15,680
Total		$15.27	$48,864

If X Company continues to buy the part instead of making it, it will save

X Company currently buys a part from a supplier for $13.29 per unit but is considering making the part itself next year. This year, they purchased 3,200 units of this part; next year, they will need 3,500 units. Estimated costs to make the part next year are: Direct materials Direct labor Variable overhead Fixed overhead Total Per-Unit $2.76 4.41 3.20 4.90 $15.27 Total $8,832 14,112 10,240 15,680 $48,864 Of the estimated fixed overhead, $6,899 are common costs that would be allocated to the part; the remainder would be additional fixed overhead costs. X Company currently receives $2,800 a year by renting unused factory space, but it will have to use this space to make the part. If X Company continues to buy the part instead of making it, it will save Submit Answer Tries 0/5