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Beto ICompany pays $510 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is considering making
Beto ICompany pays $510 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is considering making the pan. Making the part would cost $150 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 pa rt. IE nler your answers rounded to 2 decimal places.) {In} Should Beta make or buy the part? Direct materials Direct labor Cestto buy Cost per unit Cost difference {[1} Company should
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