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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 $13.72 per unit but is...

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Accounting

X Company currently buys a part from a supplier for $13.72 per unit but is considering making the part itself next year. This year, they purchased 3,300 units of this part; next year, they think they will need 3,800 units. Estimated costs to make the part are:

Per-Unit Total
Direct materials $3.74 $12,342
Direct labor 4.88 16,104
Variable overhead 2.60 8,580
Fixed overhead 4.00 13,200
Total $15.22 $50,226

Of the estimated fixed overhead, $6,468 are common costs that would be allocated to the part; the rest would be additional fixed overhead costs. X Company currently rents unused factory space for $2,600; it will have to use this space to make the part. If X Company makes the part instead of buying it, it will save

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