I want the correct answer is accounting The Norran Company needs 15,000 units of a certain part to use in its productioncycle. If Norran buys the part from Waterloo Company instead of making it,Norran could not use the released facilities in another activity; thus, all of thefixed overhead applied will continue regardless of what decision is made.Accounting records provide the following data:Cost to Norran to make the part:Direct materialsDirect laborVariable overheadFixed overhead applied$3$12$13$8Cost to buy the part from the Waterloo Company $27In deciding whether to make or buy the part, Norran's total relevant costs tomake the part are:A. $240,000.B. $405,000.C. $360,000.D. $420,000.

Step 1: Define Relevant CostThe management action impacts the relevant cost only under…

Answered: The Norran Company needs 15,000 units…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 2PA: York Company Is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of...

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