Question: QS 2 3 - 5 ( Algo ) Make or buy LO P 1 Kando Company currently pays $ 1 1 per unit to buy

 QS 23-5(Algo) Make or buy LO P1 Kando Company currently pays

QS 23-5(Algo) Make or buy LO P1
Kando Company currently pays $11 per unit to buy a part for a product it manufactures. Instead, Kando could make the part for per unit costs of $5 for direct materials, $3 for direct labor, and $1 for incremental overhead. Kando nomally applies overhead corte veing o predetermined rate of 200% of direct labor cost:
(a) Prepare a make or buy analysis of corts for thls part:
(b) Should Kando make or buy the part?
\table[[,Nako,Buy],[Dired materials],[Dined intoor,,],[Overtersd],[Caci to buy],[Coat per unt,,],[Compsyy should,,]]
$11 per unit to buy a part for a product it manufactures.

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