The Novak Company manufactures 1,100 units of a part that could be purchased from an...
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Accounting
The Novak Company manufactures 1,100 units of a part that could be purchased from an outside supplier for $13 each. Novak's costs to manufacture each part are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $2 4 4 8 $18 Total All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no alternative uses. (a-b) Your answer is correct. (a) Calculate relevant cost to make. Relevent cost to make per unit (b) Should Novak continue to manufacture the part? Yes T
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