Exercise 10-1 (Algo) Make or buy LO P1 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 par 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? (a) Make or Buy Analysis Answer is not complete. Make Buy Direct materials S 6.30 Direct labor 1.00 Overhead 0.80 Cost to buy S 5.00 Cost per unit $ 8.10 Cost difference 15 2.20 (b) Company should Buy