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Topic: Business
Number of pages / Number of words: 2 / 549
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As can bee seen in the budget shown in exhibit 3, manifolds have the largest direct labor costs than any of the other products. Since overhead is allocated based on direct labor costs, there is a large portion of the overhead costs absorbed by manifolds. Allocating costs this way

Based on the information that we have analyzed, it is our conclusion that manifolds should not be outsourced...


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Allocating costs this way

Based on the information that we have analyzed, it is our conclusion that manifolds should not be outsourced. We would be taking a risk on missing out on an extraordinary opportunity once emission standards our raised and new vehicles are required to be made with the type of manifolds that we produce...


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