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Exercise 2 3 - 1 ( Algo ) Make or buy LO P 1 Beto Company pays $ 4 . 9 0 per unit to
Exercise Algo Make or buy LO P Beto Company pays $ 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 $ per unit for direct materials and $ per unit for direct labor. The company normally applies overhead at the predetermined rate of of direct labor cost. Incremental overhead to make the part would be of direct labor cost. a Prepare a make or buy analysis of costs for this part. Enter your answers rounded to decimal places. b Should Beto make or buy the part? tablea Make or Buy Analysis,Make,BuyDirect materials,$Direct labor,,OverheadCost to buyCost per unitCost difference,,,b Company should:,,,
Exercise Algo Make or buy LO P
Beto Company pays $ 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 $ per unit for direct materials and $ per unit for direct labor. The company normally applies overhead at the predetermined rate of of direct labor cost. Incremental overhead to make the part would be of direct labor cost.
a Prepare a make or buy analysis of costs for this part. Enter your answers rounded to decimal places.
b Should Beto make or buy the part?
tablea Make or Buy Analysis,Make,BuyDirect materials,$Direct labor,,OverheadCost to buyCost per unitCost difference,,,b Company should:,,,
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