answer please correctly with full work Basil Industries produces and sells an instrument used in hospital monitoring systems. The instrument uses a sensor theBasil currently purchases from Suffolk Systems. Suffolk charges Basil $98.50 each for the 12,000 sensors Basil requiresannually. Basil's engineers believe that it would be possible for Basil to produce the sensor internally. Unit cost estimatesto make the sensors are given below:Direct materialsDirect laborManufacturing overheadTotal unit cost$33.00$42.60$20.40$96.00$16.00 of the manufacturing overhead is traceable to sensor production. Of that amount $8.00 represents fixed costs andthe remainder of the traceable costs are variable. Each sensor requires 1.5 hours of direct labor..Based on the above information, how much would Basil save annually if it manufactured in house the sensors it purchases.from Suffolk? Your answer should represent the total amount for all sensors required for the year.

Currently, Basil purchases 12,000 sensors annually for $98.50 each, for a total cost of:…

Based on the above information, how much would Basil save annually if it manufactured in house the sensors it paper from Suffolk? Your answer should represent the total amount for all sensors required for the year.

Based on the above information, how much would Basil save annually if it manufactured in house the sensors it paper from Suffolk? Your answer should represent the total amount for all sensors required for the year.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter13: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 3PA: Lean accounting Dashboard Inc. manufactures and assembles automobile instrument panels for both eCar...

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