Question: Question Completion Status: QUESTION 34 Frederick Co. Is thinking about having one of its products manufactured by an outside supplier. Currently, the cost of manufacturing
Question Completion Status: QUESTION 34 Frederick Co. Is thinking about having one of its products manufactured by an outside supplier. Currently, the cost of manufacturing 5.000 units is shown in table below. If Frederick can buy 5,000 units from an outside supplier for $130,000, should it make the part or buy the part? Direct material Direct labor Variable factory overhead Factory overhead $62,000 47,000 38,000 52,000 O Make the product because current factory overhead is less than $130,000. O Make the product because the cost of direct material plus direct labor of manufacturing is less than $130,000. Make the product because factory overhead is a sunk cost. Buy the product because total fixed and variable manufacturing costs are greater than $130,000 O Buy the product because the total incremental costs of manufacturing are greater than $130,000. QUESTION 35 Click Save and Submit to save and submit. Click Save All Answers to save all answers
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