Beto Company pays $5 90 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 $6 30 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 Beto Company pays $5 90 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 $6 30 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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Beto Company pays $5.90 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is considering making

Beto Company pays $5.90 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 $6.30 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? image text in transcribed

Beto Company pays $5.90 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 $6.30 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