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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.
What are the alternatives for Fresh Foods?
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