WK6DB1 - overhead $9.00 Total cost for making and buying...

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Han Manufacturing C/U Make C/U Buy No. of units  30,000   30,000  Direct materials 108,000.00 Direct labor 300,000.00 72,000.00 270,000.00 6.00 180,000.00 Suppliers price  21.00 630,000.00 25.00 750,000.00 27.00 810,000.00 80,000.00 Total cost  750,000.00 730,000.00  $3.60  $10.00 Variable manufacturing  overhead  $2.40 Fixed manufacturing 
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Unformatted text preview: overhead $9.00 Total cost for making and buying Less cost saved(by renting the facilities) It would be in the best interest of the Han Product Manufacturer to buy the units, as it shows a profit increase of $20,000....
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This note was uploaded on 07/07/2011 for the course BUS 600 taught by Professor Lee during the Spring '11 term at Troy.

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