How To Guides lote: This is the same setup as the previous question, but the items UNDER the table have changed. ters a year in ite face Company X has the following costs related to manufacturing and selling 75,000 Deluxe items: Retur Submit Type Cost Listing Direct materials and direct labor Amount Variable manufacturing overhead $840,000 $180,000 Rent on equipment* (see note below) $40,000 Allocated share of depreciation on factory $100,000 Annual salary of the Deluxe production manager $70,000 Allocated share of fixed selling costs $80,000 Total $1,310,000 *The equipment is only used for manufacture of the deluxe items. The rental agreement can be cancelled at the end of any month. This content is copyrighted Assume Company X is considering outsourcing production of the Deluxe product line: They would purchase ALL of the Deluxe items from a supplier. The Deluxe production manager will be laid off. Sales of the Deluxe items are expected to stay at 75,000 units. Indicate below whether the costs are relevant or not relevant for this outsourcing decision. For example, the cost of "Variable manufacturing overhead" would be a relevant cost. Direct materials and direct labor Rent on equipment* (see