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The management of Waterway Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. The part, called CISCO is a component of the company's finished product The following information was collected from the accounting records and production data for the year ending December 31, 2020 1.7900 units of CISCO were produced in the Machining Department. 2. Variable manufacturing costs applicable to the production of each CISCO unit were: direct materials $458, direct labor $4.51, Indirect labor $0.45, utilities $0.41. 3. Fived manufacturing costs applicable to the production of Cisco were: Cost Item Direct Allocated Depreciation $1,900 $860 Property taxes 530 320 870 $3.300 $1,790 Insurance 610 All variable manufacturing and direct fixed costs will be eliminated it CISCO is purchased. Allocated costs will not be eliminated if CISCO is purchased. So it CISCO is purchased the fed manufacturing costs allocated to CISCO will have to be absorbed by other production departments 4. The lowest quotation for 7,900 CISCO units from a supplier is 578,853 5. CISCO units are purchased, freight and inspection costs would be $0.38 per unit and receiving costs totaling $1.260 per year would be incurred by the Machining Department. Make CISCO (Decrease) Buy CISCO $ $ Direct material $ $ Direct labor Indirect labor Utilities Depreciation Property taxes Insurance Purchase price Freight and inspection Receiving costs Total annual cost $ (b) Based on your analysis, what decision should management make

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