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Calculate the incremental cost per unit of manufacturing P2Q2 in-house QUESTION 1 10 points Question 1 Delta Company currently buys P202, a part it uses
Calculate the incremental cost per unit of manufacturing P2Q2 in-house
QUESTION 1 10 points Question 1 Delta Company currently buys P202, a part it uses in a product it manufactures, from an external supplier. Since Delta has excess manufacturing capacity the company is considering making P202 in- house. Producing P202 would cost $2.20 per unit for direct materials and $1.00 per unit for direct labor. Dolta applies manufacturing overhead using a predetermined rate of $1.2 per dollar of direct labor cost. Variable overhead is estimated to equal 30% of the overhead applied. calculate the incremental cost per unit of manufacturing P202 in-house. (Round to the nearest $0.01)
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