Ahsan company makes 60,000 units per year of a part it uses in the products it manufactures. the unit product cost of this part is computed as follows: an outside supplier has offered to sell the company all of these parts it needs for $45.70 a unit. if the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. the additional contribution margin on this other product would be $318,000 per year. if the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. however, $3.50 of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. this fixed manufacturing overhead cost would be applied to the company's remaining products. how much of the unit product cost of $40.50 is relevant in the decision of whether to make or buy the part?

Lavage rapide is a canadian company that owns and operates a large automatic car wash facility near montreal. the following table provides data concerning the company’s costs: fixed cost per month cost per car washed cleaning supplies $ 0.70 electricity $ 1,400 $ 0.07 maintenance $ 0.15 wages and salaries $ 4,900 $ 0.30 depreciation $ 8,300 rent $ 1,900 administrative expenses $ 1,400 $ 0.03 for example, electricity costs are $1,400 per month plus $0.07 per car washed. the company expects to wash 8,000 cars in august and to collect an average of $6.50 per car washed. the actual operating results for august appear below. lavage rapide income statement for the month ended august 31 actual cars washed 8,100 revenue $ 54,100 expenses: cleaning supplies 6,100 electricity 1,930 maintenance 1,440 wages and salaries 7,660 depreciation 8,300 rent 2,100 administrative expenses 1,540 total expense 29,070 net operating income $ 25,030 required: calculate the company's revenue and spending variances for august.