Question: Xia Co . currently buys a component part for $ 9 per unit. Xia believes that making the part would require $ 6 . 2
Xia Co currently buys a component part for $ per unit. Xia believes that making the part would require $ per unit of direct
materials and $ per unit of direct labor. Xia allocates overhead using a predetermined overhead rate of of direct labor cost.
Xia estimates an incremental overhead rate of $ per unit to make the part.
a What are the relevant costs for Xia to make or buy the part?
b Should Xia make or buy the part?
Complete this question by entering your answers in the tabs below.
What are the relevant costs for Xia to make or buy the part? Round your answers to decimal places.
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