Tessmer Manufacturing Company produces inventory in a highly automated assembly

Tessmer Manufacturing Company produces inventory in a highly automated assembly plant in Olathe Kansas. The automated system is in its first year of operation and management is still unsure of the best way to estimate the overhead costs of operations for budgetary purposes. For the first six months of operations the following data were collected:Observation Machine-hours Kilowatt-hours Total Overhead CostsJanuary 3800 4520000 $138000February 3650 4340000 136800March 3900 4500000 139200April 3300 4290000 136800May 3250 4200000 126000June 3100 4120000 120000Required:Question 1: What amount of the MNO production costs is avoidable? Question 2: Should the company outsource MNO? Why or why not? Question 3: What other items should the company consider before outsourcing any of the parts it currently manufactures?