Question: Xia Co. currently buys a component part for $6 per unit. Xia believes that making the part would require $2.25 per unit of direct materials
Xia Co. currently buys a component part for $6 per unit. Xia believes that making the part would require $2.25 per unit of direct materials and $110 per unit of direct labor. Xia allocates overhead using a predetermined overhead rate of 245% of direct labor cost Xia estimates an incremental overhead rate of $0.65 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. 5 Required 1A Required 1B What are the relevant costs for Xla to make or buy the part? (Round your answers to 2 decimal places.) Per Unit Make Buy
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