Credell Company Uses 12,000 Units of a Part in Its

Multiple Choice

Credell Company uses 12,000 units of a part in its production process.The costs to make a part are: direct material,$15; direct labor,$27; variable overhead,$15; and applied fixed overhead,$32.Anderson has received a quote of $60 from a potential supplier for this part.If Credell buys the part,75 percent of the applied fixed overhead would continue.Credell Company would be better off by

A) $30,000 to manufacture the part.
B) $348,000 to buy the part.
C) $60,000 to buy the part.
D) $216,000 to manufacture the part.