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Pueblo Production Company manufactures 50,000 high-definition televisions each year. Pueblo is ...

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Pueblo Production Company manufactures 50,000 high-definition televisions each year. Pueblo is ...

Pueblo Production Company manufactures 50,000 high-definition televisions each year. Pueblo is considering purchasing the glass screens from an outside source rather than producing them internally. The following data relate to the glass screens:

Cost per screen from outside supplier	$32.50
Internal costs per screen:
Direct materials	17.50
Direct labor	8.25
Variable overhead	2.60
Total fixed overhead	67,000
Avoidable fixed overhead	50,400

What is the total relevant cost to internally produce 50,000 glass screens?

▸ $1,484,500

▸ $1,625,000

▸ $1,417,500

▸ $1,467,900

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Managerial Accounting

Edition: 4^th

Author: Davis

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Smart ... Thanks!

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