Mighty Safe Fire Alarm is currently buying 61,000 motherboards from MotherBoard, Inc., at a price of $63 per board. Mighty Safe is considering making its own boards. The costs to make the board are as follows: direct materials, $32 per unit; direct labor, $12 per unit; and variable factory overhead, $16 per unit. Fixed costs for the plant would increase by $85,000. Which option should be selected and why

Here is some basic data for delta manufacturing: cost of materials purchases on account $ 77,000 cost of materials requisitioned (includes $2,000 of indirect) 45,000 direct labor costs incurred 80,000 manufacturing overhead costs incurred, including indirect materials 98,000 cost of goods completed 276,600 cost of goods sold 149,000 beginning raw materials inventory 19,000 beginning work in process inventory 35,000 beginning finished goods inventory 25,000 predetermined manufacturing overhead rate (as % of direct labor cost) 120% the journal entry to record actual manufacturing overhead costs includes a