(Solved):Fillip Corporation makes 4,800 units of part U13 each year. This part is used in one of the…

 

Question

Fillip Corporation makes 4,800 units of part U13 each year. This part is used in one of the company’s products. The company’s Accounting Department reports the following costs of producing the part at this level of activity:

Per Unit
Direct materials $7.80
Direct labor $6.00
Variable manufacturing overhead $8.40
Supervisor’s salary $4.10
Depreciation of special equipment $8.60
Allocated general overhead $7.00

An outside supplier has offered to make and sell the part to the company for $25.60

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