Copr. Goed! Alphabet Inc. currently makes part ABC internally. Cost data to make the product are provided below. Direct materials $8.20 Direct labor $2.40 Variable manufacturing $3.30 overhead Fixed manufacturing overhead $3.90 The employee making the product would be terminated if the product is purchased from an outside supplier. Variable manufacturing overhead would be eliminated. Of the fixed manufacturing overhead, $0.90 is traceable to the production of the product and would be eliminated. The remaining fixed overhead would not be eliminated. What is the relevant cost per unit to make ABC part internally? $17.0 $16.90 $13.90 $14.80 SUBMIT

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...
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Copr. Goed! Alphabet Inc. currently makes part ABC internally. Cost data to make the product are provided
below.
Direct materials
$8.20
Direct labor
$2.40
Variable manufacturing
$3.30
overhead
Fixed manufacturing
overhead
$3.90
The employee making the product would be terminated if the
product is purchased from an outside supplier. Variable
manufacturing overhead would be eliminated. Of the fixed
manufacturing overhead, $0.90 is traceable to the production of
the product and would be eliminated. The remaining fixed
overhead would not be eliminated.
What is the relevant cost per unit to make ABC part internally?
$17.0
$16.90
$13.90
$14.80
SUBMIT
Transcribed Image Text:Copr. Goed! Alphabet Inc. currently makes part ABC internally. Cost data to make the product are provided below. Direct materials $8.20 Direct labor $2.40 Variable manufacturing $3.30 overhead Fixed manufacturing overhead $3.90 The employee making the product would be terminated if the product is purchased from an outside supplier. Variable manufacturing overhead would be eliminated. Of the fixed manufacturing overhead, $0.90 is traceable to the production of the product and would be eliminated. The remaining fixed overhead would not be eliminated. What is the relevant cost per unit to make ABC part internally? $17.0 $16.90 $13.90 $14.80 SUBMIT
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