QS $25-6($Algo$)$ Make or buy LO P$1$

Maya Company currently buys a component part for $$8$ per unit. Maya estimates that making the part would require $$5\mathrm{.}40$ per unit of direct materials and $$1\mathrm{.}00$ per unit of direct labor. Maya normally applies overhead using a predetermined overhead rate of $235\%$ of direct labor cost. Maya estimates incremental overhead of $$0\mathrm{.}60$ per unit to make the part.

$($a$)$ Prepare a make or buy analysis of costs for this part.

$($b$)$ Should Maya make or buy the part?

Complete this question by entering your answers in the tabs below.

Required $A$

Prepare a make or buy analysis of costs for this part.

Note: Round your answers to $2$ decimal places.

$\backslash$table$[[,$Make,Buy$],[$Direct materials,I,$],[$Direct labor,,$],[$Overhead$,,],[$Cost to buy,,$],[$Cost per unit,,$]]$