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q6

You are given the information under Chapter 10 (Relevant Costing - Make vs. Buy), to produce 30,000 units of a key component of one of your products. Considering the assumptions below the table, what is the relevant cost to produce that component? Please round your answer to the nearest cent; do not include dollar signs. For Chapter 10 (Relevant Costing - Sales Mix) Questions: Sales Price/unit Direct Material/unit Direct Labor/unit Variable OH/unit Product o 22.00 7.50 4.20 4.30 Product R 20.00 6.70 5.30 4.00 MH/unit 2.00 1.00 For Chapter 10 (Relevant Costing - Make vs. Buy) Questions: Historical Costs unit 7.70 DM DL OH selling expense admin expense total expense 6.30 10.00 6.00 2.60 32.60 Q 30,000 231,000 189,000 300,000 180,000 78,000 978,000 Assume OH is 75% variable and 25% fixed Assume Selling Expense is 2/3 variable and 1/3 fixed Assume Admin Expense if 50% variable and 50% fixed