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Question
Factor Co. can produce a unit of product for the following costs:| Direct material | $ 8 |
| Direct labor | 24 |
| Overhead | 40 |
| Total costs per unit | $72 |
An outside supplier offers to provide Factor with all the units it needs at $46 per unit. If Factor buys from the supplier, the company will still incur 60% of its overhead. Factor should choose to:
A.Buy since the relevant cost to make it is $56.
B.Make since the relevant cost to make it is $48.
C.Buy since the relevant cost to make it is $48.
D.Make since the relevant cost to make it is $32.
E.Buy since the relevant cost to make it is $32.
Answer
This answer is hidden. It contains 114 characters.
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Variable manufacturing overhead
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Match the following
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