Ortiz Co. produces 5,000 units of part A12E. The following costs were incurred for that...
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Ortiz Co. produces 5,000 units of part A12E. The following costs were incurred for that level of production: Direct materials Direct labor Variable overhead Fixed overhead S 55,000 160,000 75,000 175,000 If Ortiz buys the part from an outside supplier, $40,000 of the fixed overhead is avoidable. What is the relevant cost per unit of part A12E? Select one: a. $58 O b. $85 O C. $93 d. $66
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