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Han Products manufactures 23,000 units of part S-6 each year for use on its production...

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Accounting

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Han Products manufactures 23,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part S 4.00 7.00 3.00 15 S 29.00 An outside supplier has offered to sell 23.000 units of part S-6 each year to Han Products for $45.00 per part If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $603,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier Required: 1. Calculate the per unit and total relevant cost for buying and making the product. (Round your "per unit" answers to 2 decimal places) 23,000 Units Costs Buy Make Cost of purchasing Cost of making Direct materials Direct labor Variable overhead Fixed overhead 0 2 3 4 8

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