Ch 23: Homework i\ Help Save & Exit\ Submit\ 1\ QS 23-5 (Algo) Make or buy LO P1\ 1.07\ points\ Kando Company currently pays

$18

per unit to buy a part for a product it manufactures. Instead, Kando could make the part for per unit costs of

$8

for direct materials,

$5

for direct labor, and

$2

for incremental overhead. Kando normally applies overhead costs using a predetermined rate of

200%

of direct labor cost.\ \\\\table[[eBook,(a) Prepare a make or buy analysis of costs for this part],[Hint,(b) Should Kando make or buy the part?],[Print,],[References,Direct materials],[Direct labor,],[Overhead,],[Cost to buy,],[Cost per unit,]]

Kando Company currently pays $18 per unit to buy a part for a product it manufactures. Instead, Kando could make the part for per unit costs of $8 for direct materials, $5 for direct labor, and $2 for incremental overhead. Kando normally applies overhead costs using a predetermined rate of 200% of direct labor cost. (a) Prepare a make or buy analysis of costs for this part. (b) Should Kando make or buy the part