Total amount of general factory overhead


The total amount of general factory overhead, which is allocated on the basis of direct labor hours, would be unaffected by this decision. The $30 unit product cost is based on 20,000 parts produced each year. An outside supplier has offered to provide the 20,000 parts at a cost of $25 per part. Should we accept the suppliers offer?

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Business Management: Total amount of general factory overhead
Reference No:- TGS0115907

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