Below are the standard costs, Bor Co.It belongs to a component part manufactured by: Direct materials 4
Fantastic news! We've Found the answer you've been seeking!
Question:
Below are the standard costs, Bor Co. It belongs to a component part manufactured by:
Direct materials | 4 dollars |
direct labor | 10 |
factory load | 40 |
standard cost per unit | 54 dollars |
Factory overhead applies at $1 per standard machine hour. Fixed cost is 60% of factory overheads applied and is not affected by any make-or-buy decisions. Purchasing the part from an outside supplier costs $49 per unit. What is the total relevant unit production cost for the "make or buy" decision?
Related Book For
Accounting for Decision Making and Control
ISBN: 978-1259564550
9th edition
Authors: Jerold Zimmerman
Posted Date: