Business, 20.09.2020 15:01 neellllllss

The following standard costs pertain to a component part manufactured by Bor Co.: Direct materials $4
Direct labor 10
Factory overhead 40
Standard cost per unit $54
Factory overhead is applied at $1 per standard machine hour. Fixed cost is 60% of applied factory overhead, and is not affected by any make or buy decision. It would cost $49 per unit to buy the part from an outside supplier. In the decision to "make or buy," what is the total relevant unit manufacturing cost?
A. $54
B. $38

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