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Chapter 10 Homework Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you
Chapter 10 Homework Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 2 2 points Beto Company pays $4.30 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 $3.90 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. (e) 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? Buy Answer is complete but not entirely correct. (a) Make or Buy Analysis Make Direct materials IS 3.90s 0.00 Direct labor 1.00 0.00 Overhead 2.00 X 0.00 Cost to buy 0.00 $ 4.30 Cost per unit S 6.90 $ 4.30 Cost difference 2.60 X (b) Company should: Buy >
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