Muspest Supplies is currently evaluating the cost of manufacturing some of the components utilised in their products. Currently the company expects to need 6 000 parts each month. A supplier of the part has been identified and the total cost of purchasing the parts on a monthly basis would be $97 000. In analysing the part costs, the direct labour and materials cost would be $64 000 and the variable overheads would be $22 000. Based only on the relevant cost per unit, which would be the preferred option of Muspest Supplies? HD EDUCATION A. Unit costs to produce the part would be $14.33 with the unit cost to purchase of $ 16.17. In this case, the best option would be to commence purchasing the part. B. Unit costs to produce the part would be $10.67 with the unit cost to purchase of $ 16.17. In this case, the best option would be to continue to make the part. C. None of the other answers D. Unit costs to produce the part would be $14.33 with the unit cost to purchase of $ 16.17. In this case, the best option would be to continue to make the part. E. Unit costs to produce the part would be $10.67 with the unit cost to purchase of $ 1.83. In this case, the best option would be to continue to make the part.
Muspest Supplies is currently evaluating the cost of manufacturing some of the components utilised in their
products. Currently the company expects to need 6 000 parts each month. A supplier of the part has been
identified and the total cost of purchasing the parts on a monthly basis would be $97 000. In analysing the part
costs, the direct labour and materials cost would be $64 000 and the variable overheads would be $22 000.
Based only on the relevant cost per unit, which would be the preferred option of Muspest Supplies?
HD EDUCATION
A. Unit costs to produce the part would be $14.33 with the unit cost to purchase of $ 16.17. In this case,
the best option would be to commence purchasing the part.
B. Unit costs to produce the part would be $10.67 with the unit cost to purchase of $ 16.17. In this case,
the best option would be to continue to make the part.
C. None of the other answers
D. Unit costs to produce the part would be $14.33 with the unit cost to purchase of $ 16.17. In this case,
the best option would be to continue to make the part.
E. Unit costs to produce the part would be $10.67 with the unit cost to purchase of $ 1.83. In this case, the
best option would be to continue to make the part.
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