Kingston Company, which needs 10,000 units of a certain part to be used in its...
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Kingston Company, which needs 10,000 units of a certain part to be used in its production cycle, can make or buy the part. If Kingston buys the part from Utica Company, Kingston could not use the released facilities In another | manufacturing activity within the coming year. 60% of the fixed overhead applied will continue regardless of which decision option is chosen. The following per-unit cost Information to make the part by Kingston is avallable: Direct materials Direct labor Variable overhead Fixed overhead applied S 37 148 74 93 S352 S 85 Cost to buy the part from Utica Company In deciding whether to make or buy the part, Kingston's total relevant cost to make the part would be Multiple Choice $2,824,000. $2,962,000. $850.000 $3,520,000. Some amount other than these choices
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