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Question - The Bramble Company manufactures 5,800 units of a part that could be purchased from an outside supplier for $14 each. Bramble's costs to manufacture each part are as follows:
Direct materials $3
Direct labor 2
Variable manufacturing overhead 5
Fixed manufacturing overhead 9
Total $19
All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no alternative uses.
Required - Need to calculate relevant cost to make.
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