Question: 1-What is your impression from this article? What did you gain in understanding from the materials and examples presented? 2-Time Company needs 1,000 motors in

1-What is your impression from this article? What did you gain in understanding from the materials and examples presented?

2-Time Company needs 1,000 motors in its manufacture of automobiles. It can buy the motors from Shelly Motors for $1,250 each. Time's plant can manufacture the motors for the following costs per unit: Direct materials $ 500 Direct manufacturing labor 250 Variable manufacturing overhead 200 Fixed manufacturing overhead 350 Total $1,300 If Time buys the motors from Shelly, 70% of the fixed manufacturing overhead applied will not be avoided. Should the company make or buy the motors?

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