Exercise 25-1 (Algo) Make or buy LO P1 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 (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? Mako Buy (0) Make or Buy Analysis Direct materials Direct labor Overhead Cost to buy Cost per unit inces Cost difference b) Company should Exercise 25-2 (Algo) Make or buy LO P1 Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.80 for direct materials and $1.35 for direct labor. Incremental overhead to make this part is $1.64 per unit. The company can buy the part for $5.06 per unit. (a) Prepare a make or buy analysis of costs for this part (Enter your answers rounded to 2 decimal places.) (b) Should Gelb make or buy the part? Make Buy (a) Make or Buy Analysis Direct materials Direct labor Overhead Cost to buy Cost per unit Cost difference (b) Company should