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8 Part U67 ts used in one of Broce Corporation's products. The company's Accounting Department...

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Accounting

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8 Part U67 ts used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the 15,400 units of the part that are needed every year Per Direct materialts $ 2.38 3.38 6.1e $ 6.6e s 7.70 s 4.8e 8Direct labor Variable overhead Supervisor's salary Depreciation of special equipment An outside supplier has offered to make the part and sell it to the company for $27.00 each. If this offer is accepted, the supervisor's salary and all of the purchased many years ago and has no salvage value or other use. The company. If the outside supplier's offer were accepted, only $21,400 of these allocated general overhead costs would be avoided. costs, including direct labor, can be avoided. The special equipment used to make the part was general overhead represents fixed costs of the entire a. Prepare a report that shows the financial impact of buying part U67 from the supplier rather than continuing to make it inside the company b. Which alternative should the company choose

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