https Check my work mode : This shows whet is correct or incorrect for the work

Question

https Check my work mode : This shows whet is correct or incorrect for the work you have completed s Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 50,000 units of RX5 follows Olrect labor Total costs per undt 22.80 Deect mate als and direct labor are 100% variable Overhead is 80% f eed. An outside suppler has offered to supply the 50000 uns of RX5 for $18.00 per unit Required: 1. Calculate the incremental costs of making and buying component RX5. 0 Answer is complete but not entirely correct. costs of: Making the Buying the s 250,000 Total direct materials Total direct labor 400,000 90.000 Cost to buy he unts Total cost Should the company continue to manufacture the part, or should t buy the pat from the outside supplier? 771,000 40000771,000 Make the units

Explanation / Answer

1) Total Incremental costs of : Making the units Buying the units calculation Total direct materials 250000 50000*5 Total Direct labor 400000 50000*8 Variable overhead costs 90000 50000*(9*0.8) Cost of buy the units 900000 50000*18 Total Costs 740000 900000 Should the company continue to manufacture the part or should it buy the part from the outside suplier = MAKE THE UNITS

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