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University Of Southern Californi Operations And Supply Chain Management Assignment Help - the component IMC2

Question - Innova uses 1,000 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufacture the component are as follows. Direct materials ………. $ 65.00 Direct labor …………….. 45.00 Overhead ……………… 126.50 Total …………………. $236.50 Overhead costs include variable material handling costs of $6.50, which are applied to products on the basis of direct material costs. The remainder of the overhead costs are applied on the basis of direct labor dollars and consist of 60% variable costs and 40% fixed costs. A vendor has offered to supply the IMC2 component at a price of $200 per unit. Instructions (a) Should Innova purchase the component from the outside vend ...Read More

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