Alpha CoCan Produce a Unit of Beta for the Following Costs

question 71

Multiple Choice

Alpha Co.can produce a unit of Beta for the following costs:
Direct material........................................$ 8
Direct lab or:........................................24
Overhead ............................................40
Total costs per unit..........................$ 72 An outside supplier offers to provide Alpha with all the Beta units it needs at $60 per unit.If Alpha buys from the supplier,Alpha will still incur 40% of its overhead.Alpha should:

• A)Buy Beta since the relevant cost to make it is $72.
• B)Make Beta since the relevant cost to make it is $56.
• C)Buy Beta since the relevant cost to make it is $48.
• D)Make Beta since the relevant cost to make it is $48.
• E)Buy Beta since the relevant cost to make it is $56.

---

Definitions:

Family Support Act

Legislation aimed at improving the way child support is established and collected, often to ensure families receive adequate financial support.

Execution of a Will

The formal process by which a will is made legally valid, traditionally involving signatures and witnesses.

Basic Requirements

Fundamental conditions or needs necessary for a specific task or process.

Estate-Planning Devices

Legal tools and strategies utilized to manage an individual's asset distribution upon death, including wills and trusts.