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Answer the Following Questions Using the Information Below:
Genent's Preserves

Question 89

Multiple Choice

Answer the following questions using the information below:
Genent's Preserves currently makes jams and jellies and a variety of decorative jars used for packaging. An outside supplier has offered to supply all of the needed decorative jars. For this make-or-buy decision, a cost analysis revealed the following avoidable unit costs for the decorative jars:
 Direct materials $0.50 Direct labor 0.06 Unit-related support costs 0.20 Batch-related support costs 0.24 Product-sustaining support costs 0.44 Facility-sustaining support costs 0.56 Total cost per jar $2.00\begin{array} { l r } \text { Direct materials } & \$ 0.50 \\\text { Direct labor } & 0.06 \\\text { Unit-related support costs } & 0.20 \\\text { Batch-related support costs } & 0.24 \\\text { Product-sustaining support costs } & 0.44 \\\text { Facility-sustaining support costs } & 0.56 \\\quad \text { Total cost per jar } & \$ 2.00\end{array}
-The relevant cost per jar is ________.


A) $0.56 per jar
B) $0.76 per jar
C) $1.44 per jar
D) $2.00 per jar

Correct Answer:

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