Futura Company purchases the 68,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $11.70 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $11.90 as shown below: Direct materials Direct labor Supervision Depreciation Variable manufacturing overhead Rent Total product cost Per Unit $5.00 3.00 1.70 1.20 0.70 0.30 $11.90 Total $ 115,600 $ 81,600 $ 20,400 If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $115,600) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is $90,000 per period. Depreciation is due to obsolescence rather than wear and tear. Required: What is the financial advantage (disadvantage) of making the 68,000 starters instead of buying them from an outside supplier?

Urgent Please answer a soon as possible. Answer must be plagirism free    What is the role of auditors and explain the importance of the role.

Inspector expenses and other expenses that are designed to ensure quality or uncover defects are examples of prevention costs.  ture or false

Match each of the components of faithful representation with its definition.Faithful Representation                             Definition1 . Freedom from error      a. All information necessary to describe an item is                                                  reported. 2. Neutrality                       b. Information that does not bias the decision                                                         maker. 3. Completeness                c. Reported amounts reflect the best available                                                        information.