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Anna11 [10]
4 years ago
7

Marigold Corp.can produce 100 units of a component part with the following costs:

Business
1 answer:
nignag [31]4 years ago
3 0

Answer:

A. An increase of $4,500

Explanation:

For computing the total cost change, first we have to determine the total cost which is shown below

= Direct Materials cost + Direct Labor costs + variable overhead costs

= $21,000 + $5,500 + $19,000

= $45,500

And, the outside purchase is $50,000

So, the total cost change would be

= $50,000 - $45,500

= $4,500 increase

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