4 175 points Han Products manufactures 28,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials Direct labor Variable manufacturing overhead S 5.00 6.00 2.70 15.00 Total cost per part $ 28 70 An outside supplier has offered to sell 28,000 units of part S-6 each year to Han Products for $42.00 per part If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $647,400 two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier r, Han Products has determined that Required a. Calculate the per unit and total relevant cost for buying and making the product? (Round your Per Unit answers to 2 decimal places.) Per Unit Differential Costs Make Buy 28,000 Units Buy Cost of purchasing Cost of making $ 42.00
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