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Dbvis Company currenty buys a component port for $7.80 per unit. Dowis estimates that makihg the part whild iequire 56.30 per unit of ditect matenals.

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Dbvis Company currenty buys a component port for $7.80 per unit. Dowis estimates that makihg the part whild iequire 56.30 per unit of ditect matenals. and 53.80 per unit of direct laboe. Davis normally applies overhead using a predetermined owerhead rate of 125% of direct laber cost. Davis estimates. Incremental overhead of $3.30 per unit to make the part. The net incremental cost or savings of making the component is Multigin Choice f.o.g cost per unit. 16.60 savergs per ure. 1560 cout per unt. $5.60 serings per unit 5190 cost per unit

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