The following standard costs pertain to a component part

Reference no: EM13612948

The following standard costs pertain to a component part manufactured by Bor Company: Direct materials........................ $ 4 Direct labor.............................. 10 Manufacturing overhead.......... 40 Standard cost per unit.............. $54 An outside supplier has offered to supply all of the parts needed by Bor Company for $50 each. The 60% of the manufacturing overhead cost that is fixed would be unaffected by this decision. In the decision "make or buy," what is the relevant unit cost to make the part internally?

Reference no: EM13612948

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