Business, 21.04.2020 04:14 phancharamachasm

The Riverbed Company manufactures 1,488 units of a part that could be purchased from an outside supplier for $14 each. Riverbed’s costs to manufacture each part are as follows:

Direct materials $3
Direct labor 3
Variable manufacturing overhead 3
Fixed manufacturing overhead 9
Total $18

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.

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The Riverbed Company manufactures 1,488 units of a part that could be purchased from an outside supp...

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