Cleese Company Currently Purchases a Finished Part from Idle Company,but

Multiple Choice

Cleese Company currently purchases a finished part from Idle Company,but is considering using it excess capacity to make the part.Normal capacity is 20,000 hours,but Cleese is currently running at 17,000 hours.Details about budgeted factory overhead follow: Direct costs to manufacture 1,000 parts in-house would be: The relevant unit cost Cleese should use to decide whether to make or buy the part is:

A) $31.00
B) $24.50
C) $27.00
D) $26.00