Question: Xia Co. currently buys a component part for $5 per unit. Xla believes that making the part would require $1.40 per unit of direct materials

Xia Co. currently buys a component part for $5 per unit. Xla believes that making the part would require $1.40 per unit of direct materials and $1.05 per unit of direct labor. Xia allocates overhead using a predetermined overhead rate of 225% of direct labor cost. Xia estimates an incremental overhead rate of $0.55 per unit to make the part. 1-a. What are the relevant costs for Xia to make or buy the part? 1-b. Should Xia make or buy the part? Complete this question by entering your answers in the tabs below. Required 1A Required 18 What are the relevant costs for Xia to make or buy the part? (Round your answers to 2 decimal places.) Per Unit Make 5.00 Buy Required 1 Required 1B > Signal mistakenly produced 1,075 defective cell phones. The phones cost $66 each to produce. A salvage company will buy the defective phones as they are for $35 each. It would cost Signal 582 per phone to rework the phones, if the phones are seworked Signal could sell them for $150 each. Signal has excess capacity. Should Signal scrap or rework the phones? Serap Rework Sales Rowork costs Income Me Graw
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