Peluso Company, a manufacturer of snowmobiles,is operating at70 plant manager is

Question

Peluso Company, a manufacturer of snowmobiles,is operating at70 plant manager is considering making the headlights now being supplier for $22 each. The Peluso plant headlights. The design engineer estimates that each headlight requires the following: $8.00 of direct materials, $6.00 of direct labor, and $12.00 of manufacturing overhead. Forty percent of the manufacturing overhead is a fixed cost that would be unaffected by th decision. REQUIRED: Calculate the relevant costs to make each headlight.

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Amount Direct Materials                          8.00 Direct Labour                          6.00 Manufacturing Overhead = 12*60%                          7.20 Relevant cost to make each headlight                        21.20

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