Question Help Suppose Roasted Peanuts restaurant is considering whether to (1) bake bread for its restaurant in-house or (2) buy the bread from a local bakery. The chef estimates that variable costs of making each loaf include $0.52 of ingredients, S0.26 of variable overhead (electricity to run the oven), and $0.78 of direct labor for kneading and forming the loaves. Allocating fixed overhead (depreciation on the kitchen equipment and building) based on direct labor, Roasted Peanuts assigns $1.02 of fixed overhead per loaf. None of the fixed costs are avoidable. The local bakery would charge $1.75 per loaf. Read the requirements. Requirements 1. What is the unit cost of making the bread in-house? Complete the following outsourcing decision analysis to determine Roasted Peanuts's unit cost of making the bread Roasted Peanuts Outsourcing Decision Direct material Direct labor Variable overhead Variable cost per unit Plus: Fixed overhead per unit Cost per unit Requirement 2. Should Roasted Peanuts bake the bread in-house or buy from the local bakery? Why? Decision loaf. since the of making each loaf is Vthe cost of outsourcing each