Cost to Make/Unit Cost to Make/Year
Cost to buy from Outside
Direct Material 18 900,000
Direct Labor 24 1,200,000
Variable Factory
Overhead 7.5 375,000
Fixed Factory Overhead 36 1,800,000
Total Production Cost 4,275,000
Cost to Make/Year Cost to Buy/Year
Cost to buy from Outside 3,000,000
Direct Material 900,000 0
Direct Labor 1,200,000 0
Variable Factory
Overhead 375,000 0
Fixed Factory Overhead 1,800,000 1,350,000
Total Production Cost 4,275,000 4,350,000
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