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Beto Company pays $5,30 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is considering making the part. Making the part would cost $5.40 per unit for direct materials and $1.00 per unit for direct labor. The company normally applies overhead at the predetermined rate of 200% of direct labor cost. Incremental overhead to make the part would be 80% of direct labor cost. (a) Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal places.) (b) Should Beto make or buy the part? Iando Company currently pays $16 per unit to buy a part for a product it manufactures. Instead, Kando could make the part for per uni osts of $7 for direct materials, $5 for direct labor, and $2 for incremental overhead. Kando normally applies overhead costs using a redetermined rate of 200% of direct labor cost. a) Prepare a make or buy analysis of costs for this part. b) Should Kando make or buy the part? Answer is complete but not entirely correct. QS 23-7 (Algo) Sell or process LO P2 Holmes Company has already spent $86,000 to harvest peanuts. Those peanuts can be sold as is for $97,500. Alternatively, Holm can process further into peanut butter at an additional cost of $411,750. If Holmes processes further, the peanut butter can be sold $747,250. (a) Prepare a sell as is or process further analysis of income effects. (b) Should Holmes sell as is or process further