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  3. x company currently buys a part from a supplier fo

X Company currently buys a part from a supplier for $14.33 per unit but is...

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Accounting

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X Company currently buys a part from a supplier for $14.33 per unit but is considering making the part itself next year. This year, they purchased 3,300 units of this part; next year, they will need 3,600 units. Estimated costs to make the part next year are: Direct materials Direct labor Variable overhead Fixed overhead Total Per-Unit $3.99 3.78 3.70 3.90 $15.37 Total $13,167 12,474 12,210 12,870 $50,721 Of the estimated fixed overhead, $6,306 are common costs that would be allocated to the part; the remainder would be additional fixed overhead costs. X Company currently receives $2,000 a year by renting unused factory space, but it will have to use this space to make the part. If X Company makes the part instead of continuing to buy it, it will save

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