Question: Xia Co. currently buys a component part for $6 per unit. Xia believes that making the part would require $3.20 per unit of direct materials

Xia Co. currently buys a component part for $6 per unit. Xia believes that making the part would require $3.20 per unit of direct materials and $1.15 per unit of direct labor. Xia allocates overhead using a predetermined overhead rate of 215% of direct labor cost. Xia estimates an incremental overhead rate of $0.65 per unit to make the part.

I have attached the answer chart that needs to be filled in, 1-a and 1-B.

Xia Co. currently buys a component part for $6 per unit.

1-a. What are the relevant costs for Xia to make or buy the part? (Round your answers to 2 decimal places.) Per Unit Make Buy 1-b. Should Xia make or buy the part? O Make Buy

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