A company currently pays $74 per unit to buy a component part. Instead, making the part...
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A company currently pays $74 per unit to buy a component part. Instead, making the part would require direct materials of $25 per unit and direct labor of $30 per unit. Incremental overhead of $18 per unit would be necessary to make the part. The company normally uses a predetermined overhead rate of 340% of direct materials cost to apply overhead. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a make or buy analysis for the cost of this part. Make or Buy Analysis Direct materials Direct labor Overhead Cost to buy Cost per unit Make Buy Required A Required B > A company currently pays $74 per unit to buy a component part. Instead, making the part would require direct materials of $25 per unit and direct labor of $30 per unit. Incremental overhead of $18 per unit would be necessary to make the part. The company normally uses a predetermined overhead rate of 340% of direct materials cost to apply overhead. Complete this question by entering your answers in the tabs below. Required A Required B Should the company make or buy the part? Should the company make or buy the part? < Required A A company currently pays $74 per unit to buy a component part. Instead, making the part would require direct materials of $25 per unit and direct labor of $30 per unit. Incremental overhead of $18 per unit would be necessary to make the part. The company normally uses a predetermined overhead rate of 340% of direct materials cost to apply overhead. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a make or buy analysis for the cost of this part. Make or Buy Analysis Direct materials Direct labor Overhead Cost to buy Cost per unit Make Buy Required A Required B > A company currently pays $74 per unit to buy a component part. Instead, making the part would require direct materials of $25 per unit and direct labor of $30 per unit. Incremental overhead of $18 per unit would be necessary to make the part. The company normally uses a predetermined overhead rate of 340% of direct materials cost to apply overhead. Complete this question by entering your answers in the tabs below. Required A Required B Should the company make or buy the part? Should the company make or buy the part? < Required A
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