X Company currently buys a part from a supplier for $13.72 per unit but is considering making the part itself next year. This year, they purchased 3,300 units of this part; next year, they think they will need 3,800 units. Estimated costs to make the part are:

		Per-Unit	Total
Direct materials		$3.74	$12,342
Direct labor		4.88	16,104
Variable overhead		2.60	8,580
Fixed overhead		4.00	13,200
Total		$15.22	$50,226

Of the estimated fixed overhead, $6,468 are common costs that would be allocated to the part; the rest would be additional fixed overhead costs. X Company currently rents unused factory space for $2,600; it will have to use this space to make the part. If X Company makes the part instead of buying it, it will save ?

I tried:

	Per Unit	For 3,800 units
Direct material	$ 3.74	$ 14,212
Add: Direct Labor	$ 4.88	$ 18,544
Add: Variable overhead	$ 2.60	$ 9,880
Add: Fixed overhead	$ 3.7421	$ 14,220
Total	$ 14.962	$ 56,856

Fixed overhead per unit = ($ 13,200 - $ 6,468)/3,300 = $ 6,732/3,300 = $ 2.04

*Fixed overhead = $ 6,468 + (2.04 x 3,800) = $ 6,468 + 7,752 = $ 14,220

Cost for purchasing = $ 13.72 x 3,800 = $ 52,136

Cost of making = Total cost for making + rent opportunity = $ 56,856 + $ 2,600 = $ 59,456

Save in making = $ 52,136 - $ 59,456 = ($ 7,320)

But this was incorrect