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?

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\begin{tabular}{|l|l|l|} \hline (a) Make or Buy Analysis & \multicolumn{1}{|c|}{ Make } & Buy \\ \hline Direct materials & \\ \hline Direct labor & \\ \hline Overhead & \\ \hline Cost to buy & \\ \hline Cost per unit & \\ \hline & \\ \hline Cost difference & \\ \hline & \\ \hline (b) Company should: & \\ \hline \end{tabular}