Stephen's Shoes makes laces for their shoes. The following are the costs:

DM $.15,

DL $.20,

MOH $.30

for a total of $.60 per pair of laces.

Gray Company has offered to sell Stephen laces for $.40 per pair. Stephen uses 10,000 pairs in a month.

The fixed MOH is $2,400 at a level of production of 10,000 pairs, and it will not change. If Stephen buys the laces, how much better or worse off will they be? 

Answer rating: 100% (QA)

1 Direct material cost per unit 010 Direct labor cost per unit 020 MOH per unit 030 Fixed MOH 2400 N... View the full answer