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Rand Corporation produced 1,000 units of a special component part with the following costs: Direct...

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Accounting

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Rand Corporation produced 1,000 units of a special component part with the following costs: Direct Materials $14.00 Please Explain this - Does Direct Labor 26.00 each unit cost $6,500 ?? or this is the cost for over- Variable Overhead 12.00 all??? Fixed Overhead 18.00 An international supplier offer to sell the 1,000 units for $6,500. If Rand Corporation purchases the component from the supplier, one-third of the fixed costs will be eliminated. Should Rand make or buy the components? a. Buy; savings = $500. b. Make; savings = $700. C. Make; savings = $6,430. d. none of the above

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