Question: Please help me fill out the chart with the given information. Thank you! Beto Company pays $5.30 per unit to buy a part for one
Please help me fill out the chart with the given information. Thank you!
Beto Company pays $5.30 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is considering making the part. Making the part would cost $5.40 per unit for direct materials and $1.00 per-unit for direct labor. The company normally applies overhead at the predetermined rate of 200% of direct labor cost incremental overhead to make the par would be 80% of direct labor cost. (a) Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal places.) (b) Should Beto make or buy the part
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