00:07
So, here we can say that the company has been purchasing company purchasing part z for according to the question for 85 per unit.
00:27
Now let's talk about the second part here the differential cost to manufacture part z.
00:33
So, here we need to calculate the following components first direct material.
00:40
So, here our differential direct material when we talking about the cost it will be purchase of price z purchase price of z minus direct material cost for manufacturing.
00:56
So, here direct differential direct material cost we can identify so here it is 85 minus 30 which will 55 per unit.
01:12
Now the b component is direct labor.
01:16
So, here the direct labor cost for manufacturing part z is given which is 15 per unit.
01:24
C component is variable of factory cost.
01:29
So, here we can identify differential total cost...