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During September, 40,000 units of product were produced. The standard quantity of material allowed per unit was four kilograms at a standard cost of…
used to manufacture the parts.
$30,000 of depreciation on the equipment used to manufacture the parts.
The supervisor’s salary of $25,000, which would be avoided if the part is purchased from an outside supplier.
$15,000 in rent from leasing the production space to another company if the part is purchased from an outside supplier.
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