Suppose bourbon house restaurant is considering whether to (1) bake bread for its restaurant in-house or (2) buy the bread from a local bakery. the chef estimates that variable costs of making each loaf include $ 0.46 of ingredients, $ 0.19 of variable overhead (electricity to run the oven), and $ 0.78 of direct labor for kneading and forming the loaves. allocating fixed overhead (depreciation on the kitchen equipment and building) based on direct labor, bourbon house assigns $ 1.06 of fixed overhead per loaf. none of the fixed costs are avoidable. the local bakery would charge $ 1.84 per loaf. read the requirements requirements 1. what is the unit cost of making the bread in-house