Gelb Company currently makes a key part for its main product. Making this part incurs per...
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Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.50 for direct materials and $1.05 for direct labor. Incremental overhead to make this part is $1.52 per unit. The company can buy the part for $4.28 per unit. (a) Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal places.) (b) Should Gelb make or buy the part? (a) Make or Buy Analysis Direct materials Buy Make Direct labor Overhead Cost to buy Cost per unit Cost difference (b) Company should: Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.50 for direct materials and $1.05 for direct labor. Incremental overhead to make this part is $1.52 per unit. The company can buy the part for $4.28 per unit. (a) Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal places.) (b) Should Gelb make or buy the part? (a) Make or Buy Analysis Direct materials Buy Make Direct labor Overhead Cost to buy Cost per unit Cost difference (b) Company should:
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