component in the assembly of one of its products. The company is pre sently producing Part Y internally at a total cost of $ 119,000 as follows. Direct materials $ 26,000 Direct labor 28,000 Variable manufacturing overhead 20,000 Fixed manufacturing overhead 45,000 Total costs $ 119,000 An outside supplier has offered to provide Part Y at a price of $ 12 per unit. If Lindon stops producing the part internally, one third of the fixed manufacturing overhead would be eliminated. Required: Prepare a make-orbuy analysis showing the annual advantage or disadvantage of accepting the outside supplier ' s offer. Please state cle arly whether the part should be made or bought and share your work. 7. Question:( TCO B) Sandler Corporation bases its predetermined o verhead rate on the estimated machine hours for the upcoming year. Data for the upcomin g year appear below. Estimated machine hours 75,000 Estimated variable manufacturing overhead $ 4.50 per machine hour Estimated total fixed manufacturing overhead $ 825,000 The actual machine hours for the year turned out to be 77,000. Required: