Tingstrom Inc.makes a range of products.The company's predetermined overhead rate is $20 per direct labor-hour,which was calculated using the following budgeted data: 
Component B6 is used in one of the company's products.The unit cost of the component according to the company's cost accounting system is determined as follows: 
An outside supplier has offered to supply component B6 for $76 each.The outside supplier is known for quality and reliability.Assume that direct labor is a variable cost,variable manufacturing overhead is really driven by direct labor-hours,and total fixed manufacturing overhead would not be affected by this decision.Tingstrom chronically has idle capacity.
Required:
Is the offer from the outside supplier financially attractive? Why?
Definitions:
Advance Healthcare Network
A system or organization that provides forward-thinking healthcare solutions, often integrating innovative technologies and approaches.
Hidden Job Market
Job opportunities that are not advertised publicly and are usually found through networking, word of mouth, or inside contacts within companies.
Open Job Market
Refers to the external job market accessible to all job seekers, where positions are publicly advertised and available to individuals outside of the hiring company.
Online Source
An internet-based platform or site where information, data, or content is available for users.
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