A company produces 1,000 units of a part per year which are…

Questions

A cоmpаny prоduces 1,000 units оf а pаrt per year which are used in the assembly of one of its products. The unit cost of producing these parts is:Per UnitDirect materials$ 3.00Direct labor$ 2.50Variable manufacturing overhead$ 3.50Supervisor's salary$ 6.00Allocated general overhead$ 12.00The part can be purchased from an outside supplier at $20 per unit. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $8,000 of these allocated general overhead costs would be avoided.The annual financial advantage (disadvantage) for the company as a result of buying the product from the outside supplier would be: